The EUR/CZK pair closed little change yesterday, though the intra-day development was not boring. The koruna initially tracked the firming forint, while in the afternoon the Czech currency gave up all previous losses and eased in step with the Polish zloty.
Today, the Czech FX market can once again look for inspiration to Hungary and Poland too as forint’s development after yesterday 50 bps rate hike and zloty’s pre-positioning ahead tomorrow’s NBP meeting might take a center stage in Central Europe. At the same time, we do not expect anything new in domestic politics, so regional development should be decisive for the koruna, while price action after the release of the consumer confidence figures could be interesting too this afternoon.
(CSOB - Investment research)