The Slovak koruna didn’t do much yesterday for the most of the day and held stable at the 37.35 zone. There was no fresh news to guide the market and also the state budget data failed to move market prices. However, the unit received a boost from the zloty in the afternoon and broke through the level of 37.30. Given the empty calendar and no domestic events till the end of the week, we assume the market to be driven by external factors. Concerning trading today, we hold on to our neutral bias, although we do not exclude further moderate currency strengthening. Nevertheless we perceive the scope for gains below 37.20 as limited in coming weeks as some companies have already announced dividend payouts.
(CSOB - Investment research)