The Czech koruna firms against the euro and trades at 28,22 CZK/EUR before the session end. The strengthening comes after better than expected Czech June trade balance, while inflation was in-line with expectations. Positive sentiment on emerging currencies on FX markets is still a factor of the CZK firming.
Now, markets are awaiting the Fed. It is expected to leave its rates unchanged after previous 17 hikes. This should be negative for the dollar and so supportive for the emerging currencies. But, the key event of the day will be the following statement of Ben Bernanke. Koruna will reflect on the event at tomorrow opening.
The CZK/USD rate stays stable at 21,97, with only marginal change from yesterday close.