The Czech koruna strengthened a bit at the
beginning of Thursday’s session, as
improved regional sentiment after a dovish
Fed supported emerging markets.
Nevertheless it did not break through the
support at the EUR/CZK 28.25-area and
came back to the opening levels later in the
session. Stable domestic rates failed to
move the market as well as mixed
comments by central bank’s governor Tuma.
Today, the Czech koruna should absorb the
information from yesterday’s press
conference of CNB. The new inflation
forecast seems to be rather dovish in the
short run. Hence the koruna could still
remain under some pressure and test strong
resistance levels at EUR/CZK 28.42-28.45.
Breaking through these levels would
definitely be a clear bearish signal on the
Czech FX market that could trigger a further
sell-off.
(CSOB - Investment research)