As with the rest of the CE markets, the Slovak koruna started to recoup its previous losses. The pair moved from 37.70 in the morning to 37.52 and then stabilized at these levels. As expected, the GDP data had only a limited impact on the market because the figure was in line with expectations. But the unit received a boost from Moody’s rating agency, which is considering a possible rating upgrade for Slovakia. Today, the economic calendar contains no data, so the koruna will further focus on regional developments. We highlight the possibility of increased volatility and the high sensitivity also to core market developments in coming days. Despite the yesterday strengthening, we cannot exclude a repeated move towards softer levels. Once the regional sentiment improves, the koruna should move towards 37.30 backed by strong fundamentals and rate hike expectations.
ČSOB - Investment research