The Slovak koruna erased part of its previous gains on Friday and together with other CE currencies, but managed to stay below 38.40. The central bank released its foreign currency reserves statistics that showed the reserves decreased by over USD 2 bn. This was estimated as the NBS heavily intervened to support the currency on July 12.
Today, the economic calendar is empty. The next key events for the markets will be the central bank´s interest-rate decision on Tuesday. We expect the bank to raise its key rates by 50 bps at 4.50%. Until then the market will be in a wait and see mode and movements are likely to remain rather limited.
(CSOB - Investment research)