There was no clear reason for the price action, but the stronger zloty likely weighted. Regarding trading, the koruna opened at EUR/CZK 28.45, but quickly jumped to the 28.35 zone where it traded for the most of the session. It retreated to 28.42
at the end of the day. This morning is back at yesterday’s morning level, as a drop of the Slovak koruna pushes it down.
Today the row in Slovak governing coalition may put some pressure on the whole region. Nevertheless, damages might be limited. Thus the koruna may not dip below 28.51. The market waits for tomorrow’s inflation and 14-year tender. Given quiet EUR/USD the koruna may continue to trade sideways.
(CSOB - Investment research)