Yesterday, we advocated some correction on the Slovak koruna into strength

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)