Yesterday, the Czech koruna touched the new all time high (28.106 EUR/CZK) just after the markets opened. Nevertheless later during the session it received negative impetus from the US as higher US core inflation triggered sell off in the emerging markets. Hence the koruna sledded towards the EUR/CZK 28.42 level. We expect nervous trading today. As there are no significant market-movers scheduled for this session, we believe that strong domestic fundamentals should be partly eliminated continuing regional sell off. We see strong support levels for koruna at 28.46/28.56 EUR/CZK.
(CSOB - Investment research)