The Slovak koruna firmed against the euro on Friday boosted being influenced by a relative good sentiment in the region. It broke through the level of 37.70 and moved to 37.65 but then erased part of its gains and closed at 37.75. Today, in the absence of key domestic data releases and due to public holidays in UK and US we expect calm trading with the exchange rate staying close to current levels. Despite recent strengthening, the koruna is assumed to remain vulnerable given dividend payouts and upcoming elections. The next key events for the markets will be the central bank’s interest-rate decision on Tuesday.
(CSOB - Investment research)