The Slovak koruna had a rather calm
session yesterday, but extended its recent
gains to 38.54 without much fresh news
guiding the move. It was left in the cold by
June HICP data as they confirmed the
expectations. Today, in the absence of fresh
economic data releases or other events,
external factors are likely to dominate
koruna’s intraday path.
Despite strengthening in the two previous days, we
remain a little bit sceptical about further
koruna gains. We rather expect stabilization
close to current levels. Nevertheless, the
currency will remain vulnerable and it could
return to weaker levels in the case of
regional sentiment worsening.
(CSOB - Investment research)