The Czech koruna was moving sideways during yesterday’s session and closed not far from opening levels at 28.29 EUR/CZK. The markets more or less ignored yesterday’s figures as better than expected trade balance played in favor of the koruna and lower inflation rather against.
For today the regional sentiment should be decisive once again. After yesterday’s FOMC meeting and the statement admitting the possibility of further rate hikes, it seems that USD should take break before further significant losses. That should take the wind out of central European currencies sails. Hence we do not bet on strong koruna today.
(CSOB - Investment research)