Yesterday, the Czech koruna trimmed losses from previous sessions and closed stronger at 28.20 EUR/CZK. Nevertheless after the markets closed the koruna sledded down again due to new sell off in emerging markets triggered by overnight falls of US stocks and the Brazilian real.
Today the sentiment towards central European currencies should be driven mainly by upcoming US and Europeans figures. Especially US new home sales and German ifo index should be decisive for the global stock markets today and thereby for the central European currencies including the Czech koruna as well. We maintain our recommendation to buy the koruna at any time if it weakens significantly (strong resistance at 28.46/28.56 EUR/CZK)
(CSOB - Investment research)