The Slovak koruna was slightly stronger on
Monday. It opened at around EUR/SKK
37.60 and quickly moved to EUR/SKK
37.50. The unit stayed at around this level
during the rest of the day. The central bank
monetary policy meeting takes place today.
We expect (market expectations are the
same) that NBS will keep its powder dry and
rates should stay at current level of
4.50 percent. However, surprise hike could
boost the demand for SKK today. Koruna
should stay in the range of EUR/SKK
37.400-600.
(CSOB - Investment research)