Despite bullish macroeconomic data the Czech koruna eased on Friday

Despite bullish macroeconomic data the Czech koruna eased on Friday. Higherthen- expected inflation, as well as a quite reasonable improvement in domestic demand and overall GDP growth indicated that the Czech National Bank will probably continue tightening its monetary policy. Moreover, Friday’s minutes of the CNB Board meeting also indicated this to a certain extent. The reason why the koruna could not score at the end of the last week lies in strong one-off purchases by a strong domestic market player buying a large amount of euros. The EUR/CZK hovered above the 28.3 level and tested the 28.33 resistance.

Today, the domestic eco calendar is empty so the koruna might initially digest Friday’s macro figures, while latter on it may stay in a wait-and-see mode ahead tomorrow’s release of the July C/A figures.

(CSOB - Investment research)