The Czech currency remained in a tight
range during most of the yesterday’s
session. The koruna hovered around
EUR/CZK 28.00, as it lacked any significant
impetus for trading. The up-move in
European and US stocks did not have much
impact.
Today, most of the attention will shift to the
CNB rate setting meeting. We believe the
CNB will keep the rates unchanged and be
rather dovish in its comments. Although that
kind of outcome is more or less expected by
the market, it still could have some negative
impact on the Czech currency. In case the
global sentiment towards emerging markets
stays unchanged, we expect to see a
weaker koruna at the end of the session.
(CSOB - Investment research)