The Czech currency touched its all-time high on Friday as the EUR/CZK pair dipped to the 28.105 level in early trading. The price action was a result of calmer situation in global equity and FX emerging markets. Friday’s trading was, however, softer as usual before weekend. From domestic perspective the focus will be put definitely on the upcoming parliamentary elections (Friday and Saturday). Given the latest polls nobody knows who can form a new ruling coalition which might bring some uncertainty to the market especially in its second half. Nevertheless, today the domestic and even foreign calendar is empty so the EUR/CZK may continue to hover just above the 28.10 support, which proved to be quite strong.
(CSOB - Investment research)