Headlines
Currencies: CE forex markets calm ahead of Bernanke’s speech
Czech Republic
The Czech koruna strengthened slightly to EUR/CZK 24,82 even as sentiment on global equity markets remained negative. This could have been caused by a stronger euro against the dollar. The koruna maybe received also support from some hawkish comments from the new central banker Kamil Janacek, who has been previously considered as a dove.
Today, the domestic calendar is empty thus the koruna’s price action could be limited from this point of view.
As could have been expected, yesterday’s hawkish commentary of the new member of the CNB Bank Board K. Janacek had a limited effect on the Czech fixed-income market. The swap rates rose slightly. However, the question remains whether this movement can truly be tied to the Janacek’s comment on the development within the Euro zone. As said yesterday, the market should stay calm as no real action can be expected from the CNB in the foreseeable future.
Today, the Czech market will most certainly reflect the movements of global markets and actually the revision of the US GDP figures and in the afternoon speech of Fed chief Bernanke at the Jackson Hole symposium.
| Currencies | change | |
| EUR/CZK | 24.74 | -0.5% |
| EUR/HUF | 283.3 | 0.3% |
| EUR/PLN | 3.985 | 0.1% |
| USD/PLN | 3.145 | -0.2% |
| EUR/USD | 1.273 | 0.0% |
| USD/JPY | 84.7 | 0.0% |
| Bonds 2Y | change | |
| Czech Rep. | 1.76 | 0.00 |
| Hungary 3Y | 7.21 | 0.42 |
| Poland | 4.56 | 0.01 |
| Slovakia | 1.47 | -0.28 |
| Eurozone | 0.62 | 0.01 |
| USA | 0.54 | 0.03 |
| Bonds 10Y | change | |
| Czech Rep. | 3.36 | 0.00 |
| Hungary | 7.35 | 0.29 |
| Poland | 5.38 | 0.02 |
| Slovakia | 3.62 | -0.04 |
| Eurozone | 2.15 | -0.02 |
| USA | 2.52 | -0.01 |
Poland
Despite the ongoing fragile sentiment on global equity markets, the Polish zloty managed to keep below the EUR/PLN 4.00 mark. Thus, yesterday’s development is technically positive for the zloty. It suggests that PLN bears are reluctant to test the area between the 20- and 50-day average (EUR/PLN 4,03-4,05).
Global markets are further dominated by bears, which prevents the zloty from any further pronounced gains at this point in time. The domestic scene will also be waiting for a release of the GDP figure on Monday.
