The Slovak koruna lost sharply yesterday

The Slovak koruna sell-off continued together with the region yesterday as foreign investors were closing their positions. The unit lost sharply already in the morning, moving from 37.20 to 37.40. The second depreciation wave came in the afternoon when the EUR/SKK has broken above the 37.40 resistance falling to 37.47. Nevertheless it managed to correct by the end of the day to 37.37. Today, the economic calendar is pretty heavy with the focus on industrial output and wages. But it is unlikely they will be a strong catalyst for a spectacular price movement. The koruna will further watch mainly the regional sentiment and we expect it to stabilise within the range of 37.25-37.50. Nevertheless, if the neigbouring currencies weaken, the koruna could post further losses.