The Slovak koruna broke through the level of 38.0 for the second time this week and firmed to 37.90 boosted by positive sentiment on emerging markets. Today, the economic calendar is rather thin and only includes the June producer price index. These are usually no market-moving data. The koruna is expected to continue to move in line with other regional markets and external factors will dominate its intraday path. In this sense mainly U.S. data will be important. In the case that the data will not be dollar positive, the koruna might extend its gains. Nevertheless we don´t expect the currency to become stronger than 37.80.
(CSOB - Investment research)