The Slovak koruna continued on its strengthening path yesterday in the morning breaking through the level of 37.20 without much fresh news guiding the move. It was mostly the forint firming. But the unit had to give back some ground later in the session due to some mild profit taking and finished the day close to the opening level. Today, the lack of domestic events suggests that the global sentiment will be the key driver. We assume range-bound trading in anticipation of press conference following the ECB´s interest-rate decision. Its comments might support the euro and subsequent cause the pressure on the local currency. Nevertheless we do not expect any significant weakening of the koruna, the level of 37.40 should hold.
(CSOB - Investment research)