The Czech koruna has broken the 28,30 level and climbed to its 2-month high today. The closing rate is 28,26 CZK/EUR. Positive factors are mainly external. All the CE currencies are pushed higher thanks to expected Fed pause in monetary tightening. Tomorrow, Czech inflation and trade balance will be releases. We expect acceletation of inflation to 3,0 % y/y and trade surplus CZK 3,0 bn.
The CZK weakened slightly against the USD compared to the Friday close. The rate ended today at 22,98, when the dollar corrected its Friday losses. The USD/EUR stabilises during Monday before the very important Fed meeting that takes place tomorrow.