The Czech koruna stabilized already yesterday, when it resisted selling pressure on riskier assets. Today, the pressure eased and the Central European currencies closed flat. The CZK however continues outperforming the region and surged as high as 28,20, closing then at 28,24 CZK/EUR. No important Czech news were released today.
Czech central bank holds a monetary meeting tomorrow. Interest rates should stay on hold, we expect stable rates in the whole H1.
The CZK has firmed significantly against the USD, too. The closing rate is 21,38 CZK/USD, meaning a 20h gain. The eurodollar stays relatively quiet, despite number of releases. The market awaits tomorrow ISM report, the key event of the week.