The Czech koruna trades stronger and stronger. Today, the koruna set another high against the euro at 27,70 CZK/EUR. This significant move wasn´t driven by any macro news. A combination of some more aggressive orders perhaps with technical factors after breach of the 27,85 line, has kicked the pair to new records. Recent events are rather negative for the CZK (Central bank chief´s FX comment, current account gap, fiscal deficit), but buying appetite for higher yielding currencies such as HUF, PZL and SKK draggs the CZK higher.
The koruna has firmed against the dollar to the 21,00 CZK/USD level despite the USD firming vs. the euro. The dollar surged to 1,3152 USD/EUR after better-than expected jobless claims. The market now awaits tomorrow US CPI data that may influence expectations about Fed´s rate decisions.