The Czech currency firmed a touch in step
with the zloty yesterday. Once more the
market lacked strong stimuli as news from
core markets and domestic political scene
did not impressed the market. The EUR/CZK
moved slightly south in the 28.4 area,
closing just slightly below the opening level
(28.48).
The macro calendar is quite interesting in
the US today (core CPI, Fed Chairman
testimony), hence the unit will focus on the
trading in New York, since these two events
might define a new direction for emerging
markets. Nevertheless before the US
figures/Bernanke’s speech, it could be a 3Y
domestic bond auction, which might
eventually grab some attention, especially if
demand will be very poor (although we think
this will not be the case). Beside that we
believe that uncertainty ahead of the key US
data might put some pressure on the whole
region (particularly on the forint and Slovak
koruna), so the koruna could feel some
negative spill-over effects today.
(CSOB - Investment research)