The Czech currency was looking for a direction against the euro during
yesterday session. The koruna strengthened from 30.340 to the level of
30.200 in the morning, however, it corrected previous gains and returned
back to 30.350. The EUR/CZK closed at 30.300.
The koruna fell vs. the euro
in reaction to the ministry of finance B.Sobotka's statement, that the
ministry will cooperate with the central bank against the koruna
strengthening. Sobotka also said, that the Czech Republic could join
European currency before 2010. The koruna gained vs. the dollar as the
dollar was losing against the euro on world markets yesterday. The USD/CZK
fell from the level of 31.000 in the morning to 30.700 in the end of
trading. Money supply figure is released today, we don't anticipate any
impact on the koruna. The EUR/CZK should remain between 30.250 - 30.550 and
the USD/CZK should move in the range of 30.550 - 31.100.
open high low close today (31.7.)
EUR/CZK 30.370 30.370 30.200 30.300 30.280
USD/CZK 30.980 31.000 30.700 30.700 30.890
Stepanka Kuzilkova, Investment Research, CSOB