The Czech koruna wiped off some a of the previous days losses in yesterday’s session as improvement in the sentiment towards the region and exceptionally strong GDP figures (6.9% y/y, market consensus: 4.9% y/y) played in favor of the Czech currency. Hence it broke through 28.80 and gained about 0.9% to mark the support level at 28.635 EUR/CZK. Nevertheless later during the session nervous sentiment in the region ahead of US payrolls made the koruna to give up part of its gains and close at 28.74 EUR/CZK.
For today there are no market movers scheduled neither at home nor in the region. Although the huge negative correction on the emerging markets seems to be partly over, the whole Central European region is still cautious in gains. Investors might be afraid of strong US payrolls and further increase in yields in the core markets. That could further worsen the mood in CE, but a negative impact on koruna should be rather limited. On the other hand we do not expect significant gains either as it should be pretty difficult to break through the support at 28.635.
ČSOB - Investment research