The Czech koruna continued weakening on Monday on back of profit taking after reaching tree-week low last Thursday. Mainly American banks were selling korunas and tried to push the koruna above the level of 33. They almost succeed just before the end of trading session when EUR/CZK approached 32.90. However, there is no particular reason why the koruna should be weaker. Hence, we see the koruna should stay on the strong side of 33 level.
ČSOB Investment Research