Czech koruna tested barrier at 26.0 EUR/CZK
Lower than expected Hungarian and Chinese PMI weighed on CEE currencies. The Czech koruna approached a technical barrier at 26.0 EUR/CZK but did not break through. Nevertheless the weak Czech currency raised hedging activity of Czech exporters. Weakening of the Polish zloty was amplified by faltering retail sales, which grew a mere 0.1 % y/y (markets expected +0.4 %) and revived discussion about further monetary easing by the NBP. Even bigger losses of the zloty were prevented through a euro sell-off by state owned BGK bank.
Click here to read the full report: FX Daily
KBC