The Czech koruna opened weaker at EUR/CZK 28.64 yesterday and drifted further lower in the morning. However having touched 28.75 it bounced back, therefore it closed little changed in the end. There were no domestic incentives, but the koruna fell on back of overall negative sentiment toward emerging markets. Especially the weak zloty and forint were decisive. Nevertheless, the koruna is reluctant to drop quickly without any domestic negative incentive.
Today the domestic calendar is again empty. Thus the overall atmosphere in the region may drive the market again. Although the political row in Poland continues, we do not expect major movements today. Therefore the koruna may hovered in the range of 28.56/75.
(CSOB - Investment research)