At the end of the week the Slovak koruna did not show any major movements staying near 38.30 zone as it lacked significant impetus. Wait-and-see attitude will probably linger until the new government will be establish. We expect the market to continue eyeing domestic political developments and comments during this week. In the absence of decisive developments from this side, we expect range-bound trading to prevail. From the economic point of view, the key events for the markets will be the central bank’s interest-rate decision on Tuesday. We expect the repo rate to be left unchanged at 4.0 %. Our projection is in line with the market consensus; hence the outcome should leave the markets barely affected. However, it will be the NBS statement that really gets trader’s attention.
(CSOB - Investment research)