The Czech koruna
weakened in yesterday’s session as it tracked the fall of the Slovak
koruna caused by the intervention of the NBS. Hence, the EUR/CZK pair moved
up to the 27.80-27.90 range.
Today the session might be rather calm as most of the foreign investors should stay
in wait and see mode ahead of the end of the two-day FOMC meeting. Hence, the
pair might stay in sideways mode during most of the session with a slight negative
bias in respect to the risk of further interventions on the Slovak FX market. Nevertheless
we believe the pair should not get out of the 27.80-27.90 range.