The Czech koruna is tied up within the tight range (28.18-28.28) partly due to pre-election uncertainty, partly because of growing risk aversion in the global financial markets. Falls of Turkish lira and overall deteriorative sentiment of global investors towards emerging markets should prevent the koruna from strengthening also during today. Nevertheless we do not bet on significant losses of the Czech currency as strong domestic fundamentals should always attract enough buyers.
(CSOB - Investment research)