The Slovak koruna lost additional ground yesterday, as the exchange rate moved towards 38.16, but later bounced a little bit back and closed at 38.13. Today, the calendar contains May HICP data. These shouldn’t play a big role in today’s trading as they mostly don’t deviate much from the overall inflation report released on Monday. However, they are important for the central bank’s interest rate decision and the NBS usually comments on them. The trading pattern should not change today. Given the political uncertainty ahead of June 17th elections there will further persists negative pressure on currency. We do not exclude the level of 38.20 will be crossed in the short-term.
(CSOB - Investment research)