It was set at the EUR/CZK 28.245 level. However, the market is fragile and therefore the koruna quickly retreated. The trigger was the zloty which bounced back after morning’s rise. The koruna didn’t dip more than to the 28.46 level, which proved to be a strong support for the unit in recent days. There were no significant events home or in foreign markets. The currency is still overbought and therefore cautious to move further south. Nevertheless, the trend remains positive, thus buy on dips strategy is still sexy. Today no domestic event is on agenda. The markets worldwide may waits for the FOMC meeting. Thus the koruna may move sideways within the 28.30-28.46 range. The December trade figure and the Minutes due on Friday will be in focus too.
(CSOB - Investment research)