The Czech crown gained on Monday as investors reassessed the negative impact of the lost Nomura case

The Czech crown gained on Monday as investors reassessed the negative impact of the lost Nomura case. The Czech koruna thus successfully trimmed most of the losses from the end of the last week and even ignored the bad regional mood that sparked after new snap poll threat in Poland. Hence at the end of the session the koruna stayed at 28.48 EUR/CZK.

Markets calmed down when Czech officials made clear that exact amount of the payments to Nomura could be finally significantly lower than originally announced 40 billions crowns. Beside that the corresponding FX transaction might go through the Czech National Bank and not through the market. Hence the impact on the exchange rate should be limited anyway. For today as for the rest of the week the calendar of domestic events is rather empty and the Czech koruna should once again concentrate more on the development in the Central Europe. Growing political tension in Poland and persisting uncertainty over emerging markets should prevent the Czech currency from further significant gains.

(CSOB - Investment research)