Yesterday, we advocated some correction
on the Slovak koruna into strength. That
seemed to have become reality over the
day, as EUR/SKK pair moved up close to
36.83. Today, the calendar contains
September HICP data. These shouldn’t play
a big role in today’s trading, as they mostly
don’t deviate much from the overall inflation
report released last week.
However, they are
important for the central bank’s interest rate
decision and the NBS usually comments on
them. More important for the currency will
be the regional sentiment. If it remains
favourable, the koruna might extend its
gains. But the more likely scenario is the
stabilisation close to current levels.
(CSOB - Investment research)