Thus the unit is on sight from its historical high after the central bank decided not to cut interest rate on Thursday. The market opened at 28.40 and slowly move south over the session. Nevertheless, traders are cautious ahead the meeting of the ECB, which may raise euro rates by 25 bps. Accordingly negative interest rate differential towards the koruna may go wider. On the other hand,
Hyundai is finally expected to confirm its large investment in the Czech Rep. this week. The koruna may attack its life-time high on that news.
Today no domestic data are on agenda, thus the market may look abroad. The calendar in the region looks pretty interesting, because all central banks hold their policy meeting. It may raise volatility. An eventual rate cut in Poland may help the CE currencies, as it lures foreign investment into Polish bonds. All in all, the koruna may stay strong.
(CSOB - Investment research)