Slovak koruna ended stronger after volatile session

The Slovak forex market ended slightly stronger after volatile session. We expect this trend to continue in the days ahead. Today, PPI is on the agenda but we do not expect any significant impact on the market. The NBS board holds its regular repo setting meeting on Tuesday and 25-50 bps hike is almost a done deal. Higher rates may help to boost the demand for the local currency. It could act as a short term support. Anyway, EUR/SKK is drifting higher step by step and we expect testing of the EUR/SKK 38.00 level in the short term. The reasons are the upcoming elections and dividend payments. Today, look at the core markets for impetus.

ČSOB