The Czech koruna surprisingly extended its gains up to new the all-time time highs. It was set at 28.145 EUR/CZK. It more or less ignored the afternoon losses of Polish zloty and Hungarian forint and stayed firm up till the end of the session. Continuous falls of US dolla r could still play in favor of the whole region as well as the Czech koruna.
On the other hand rising European yields and fall of the Turkish lira could be a negative factor. In addition, the koruna is close to very strong resistance levels. Hence we rather bet on a milder negative correction at the end of the week. EUR/CZK sets new all-time high, but retrated later on selling of TRY.
(CSOB - Investment research)