The Slovak koruna started the day on a positive note firming to 37.44 on the back of positive regional sentiment. But it returned to 37.50 later during the session and held a tight range close this area for the rest of the day. Today’s trading session lacks domestic incentives or economic data and so external factors are likely to dominate koruna’s path. We don’t expect major movements to occur, the currency should move in a sideways trading pattern close the 37.50 level. Nevertheless there still exists more risk on the upside as dividend payouts concern will further weight on the koruna.
(CSOB - Investment research)