The Slovak koruna booked new record
highs on Tuesday. It went through the
EUR/SKK 35.50 level supported by the
bullish sentiment in the region. The unit
touched the EUR/SKK 35.495 and retreated
slightly back to EUR/SKK 35.530 in the
afternoon. Forex trading was inspired by the
comments of Slovak Deputy Finance
Minister Frantisek Palko who said that
strong GDP growth could push the public
finance deficit to around 2.5 percent of GDP
in 2006. Slovakia recorded record strong
economic growth in the Q3 2006 of 9.8
percent supported by the foreign demand
and investment activity.
Today, the market
could try to push the EUR/SKK lower again
maybe towards the new all time high. We
also look closely to comments of ECB
Liebscher, who will speak in Bratislava about
Slovakia: From Slovak crown to the euro. A
positive assessment would stimulate market
thinking on the chances of the country to
enter the euro area in 2009.
(CSOB - Investment research)