The Czech currency firmed a touch in step with the zloty yesterday

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)