The Czech koruna failed to track the gains
of the Polish zloty on Tuesday. Investors
tried to test 28.10 EUR/CZK in the morning,
but USD/CZK orders drove the pair back
above 28.20 EUR/CZK.
Today in absence of domestic market
movers, attention should turn back to the
regional mood. It will be crucial whether
other central European currencies are
able to break through strong supports
(mainly 3.90 EUR/PLN). If that is the
scenario for today, the koruna might try to
test 28.10 once more. Nevertheless we do
not believe in further significant gains, as
domestic politics should soon start to play
the role.
(CSOB - Investment research)