The Czech koruna lost some ground on
Friday afternoon to dip as low as 28.73.
Mainly New York based traders sent the
koruna lower. There is no clear reason,
because other regional currencies were
mostly flat. Some nervousness ahead
today’s figure might have waited. Hungarian
poll and stronger dollar might explain the
price action, too. However, such pessimistic
view on the koruna wasn’t prevalent opinion
of all traders, hence the koruna returned
back to fifties this morning.
Today the March inflation might not drive the
market to large extent. The figure came at –
0.1 m/m, 2.8 % y/y respectively, and showed
lacking demand inflation pressures. On the
other hand, the February industry output
showed continuing strong growth (11.9 %
y/y). Finally, unemployment fall more than
expected. All in all, the figures may not set a
new trend. The koruna may continue to
trade sideways within the 28.46/68 range.
(CSOB - Investment research)