Czech koruna was pretty volatile on Friday, but it didn’t break the trading band EUR/CZK 28.65/85. It was under weakening pressure just in the morning as capital flows out of emerging markets. It unsuccessfully tested upper limit of the band (28.85), but it recovered sharply at noon. Strong U.S. payrolls put another fire on the region and the koruna sank back to negative territory in the afternoon to close near 28.75.
Today the January industrial output is due. The figure may not affect the market significantly, but it might be rather interesting, because the CSU made complete revision of methodology and previous data. Thus our view on the industry might change. However, development of sentiment towards emerging markets might be decisive again.
(CSOB - Investment research)