Very rich developments in other Central
European Forex markets completely
overshadowed domestic news including a
regular CNB’s meeting (for more see the
news) and parliament’s failure to approve its
speaker yesterday. In fact, the Czech
currency primarily focused on the continued
sell-off in Hungary and Slovakia.
Nevertheless despite forint fresh all-time
lows and repeated FX interventions in
Slovakia contagion was not so severe and
the koruna’s losses were relatively modest.
The EUR/CZK pair reached its intra-day high
below the 28.58 resistance, while it closed
domestic trading at the 28.52 level.
Today, the market will have a chance to
digest a new FOMC statement released
yesterday evening. Since we believe that the
statement should be well received by most
emerging markets, the downward pressure
coming from other CE markets should ease.
On the other hand, poor political prospects
in Slovakia will not disappear immediately,
which may extend the selling on the Slovak
Forex market and limit eventual koruna’s
gains after Fed modestly dovish statement.
(CSOB - Investment research)