Sentiment again was mostly positive to Central European currencies throughout most of yesterday’s trading and the CZK just joined this broader move. So, in line with the PLN and the SKK, the CZK moved stronger in the morning session. However, as was the case over the previous two weeks, it again failed to go for the test of the all-time highs at 28.225. EUR/CZK stalled at around 28.26. Once this test was rejected, EUR/CZK first drifted sideways just to return back above the 28.30-level at the end of the session.
For today, again there are no market mov ing data on the Czech eco calendar. For the short term we expect more range trading in EUR/CZK. The all-time highs still are within striking distance, but we see no trigger for a test (or break) yet.
(CSOB - Investment research)