Yesterday the Czech koruna in a quiet session sledded down to 28.20 EUR/CZK. Primary reason is uncertainty about the final result of upcoming elections where both biggest political rivals ODS and CSSD have nearly equal chances to win. Hence there is the risk of post-election stale mate or the unpopular government of CSSD with silent support of the communists. that any result of the elections could reverse the strengthening trend of the koruna (which is primarily driven by strong domestic fundamentals), the koruna might tend to slow down and weaken a bit ahead of elections due to mentioned uncertainty. Beside that there is also some regional uncertainty arising from the expectations about important US figures this week (index ISM and payrolls). Hence the regional impact can be slightly negative as well.
(CSOB - Investment research)