The Koruna remained on a notably good track, gluing to the Czech National Bank’s intervention threshold, after Q1 gross domestic product confirmed that the Czech economy remains on a good track.
At the time being, there are only few reasons that could cause the Czech currency to move away more significantly from the CNB threshold. Quite interestingly, data on liquidity operations of the CNB suggest that even though the koruna remains close to the threshold, the CNB has probably not intervened against its appreciation to any greater extent in the recent weeks, KBC reported in its recent publication.
The Polish zloty, however, after remaining firm on Monday, closed slightly under pressure on Tuesday.
"Although the hard eco figures that are to be released in the rest of this week (labour market, industry) will likely confirm solid performance of the Polish economy we see rather limited room for further appreciation of the zloty in the short-term," BNP Paribas commented in a recent note.
Yesterday’s hawkish comments of some Fed officials suggesting that a summer rate hike was not off the table certainly do not play in favor of the currency’s appreciation, given that zloty’s correlation with vulnerable emerging markets and risky assets is highest among regional currencies.
