Yesterday the Czech koruna was tracking
the regional profit-taking ahead of crucial
FOMC meeting. Today, the good result of
trade balance (CZK 9 billions surplus) and
inflation more or less in line with market
consensus (0.1%m/m; 2,8% y/y) are neutral
to slightly supportive to the Czech currency.
On the other hand, the regional sentiment
should be mainly determined by market
positioning ahead of the FOMC meeting. In
case of a dovish Fed statement we can
expect some further strengthening of CEE
currencies. For the koruna crucial euro
support is at 28.20-area.
(CSOB - Investment research)