The Czech koruna hovered in the tight range of EUR/CZK 28.54/60 for most of the European trading yesterday. The currency shrugged off balance of payments data and development in the region as in previous days. In American trading the koruna inched lower to 28.63, it may keeps the currency weaker this morning. The February current account surplus came at CZK 2 bn, slightly above forecasts, on back of lower dividend outflow. Nevertheless, FDI switched into red therefore overall impression is more or less neutral.
Today no data are on agenda. Moreover, That’s the last regular session before Easter. Domestic market is tomorrow open, but key offshore markets will be closed, therefore traders may square their position ahead of long weekend and volume may fall. Therefore the koruna might be range- bounded.
(CSOB - Investment research)