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)