The Czech koruna remained under negative influence of regional sentiment and overall emerging markets sell off

The Czech koruna - in line with our expectations - remained under negative influence of regional sentiment and overall emerging markets sell off. During most of the Friday’s session it stayed within the tight range just below 28.50 EUR/CZK.

We do not expect significant improvement of the market sentiment at the beginning of this week. Especially political tensions in neighboring countries should prevent the koruna from testing further levels of resistance (mainly 28.46 and 28.38). Later in the week the koruna might get support from CNB interest-rate meeting.

(CSOB - Investment research)