On Friday the Czech koruna initially went
through an expected negative correction.
Nevertheless the pair failed to break through
28.15 EUR/CZK and stayed in a tighter
range in a wait and see mode till the US
figures release. US payrolls triggered a
sharp rise in global yields, but surprisingly
the central European currencies benefited
from that. Hence the koruna moved back to
28.00 EUR/CZK.
Today, we expect rather calm session. As
the koruna continues to move near its all
time highs we still see the chance for a
downward CZK correction. Furthermore later
during the week the sharp drop in inflation
might help the koruna to move back above
28.20 EUR/CZK.
(CSOB - Investment research)