It opened at weak footing as the zloty lost ground ahead the FOMC meeting. Nevertheless, the losses were mild and the koruna didn’t dipped below the EUR/CZK 28.46 level. There were no domestic events able to drive the koruna. Only Finance
Minister Sobotka told that the recent strong koruna was not adequate to the economy. However, it hardly makes a headache to traders. The market looked in the region where both the Slovak and Polish central banks held their regular policy meetings. Evening FOMC meeting also hamper activity. In the end the unit recovered to close at 28.35.
Today, only the January state budget balance is due and it may not affect the market. Thus the market may focus on Friday’s figures (foreign trade and the CNB Minutes). Yesterday’s recovery of the zloty improved mood in the region, while Fed’s intention to elevate rates further may not harm the region to a large extend. All in all, the koruna may trade sideways again.
(CSOB - Investment research)