The trading was calm yesterday. The Czech currency was curbed against the
euro between 30.160 - 30.300. The koruna slightly weakened against the
dollar from 30.550 to 30.580 during morning trading, however, firmed again
to the level of 30.330 in the afternoon influenced by the development on
euro-dollar markets. The USD/CZK closed at 30.450.
The market is supposed to
be nervous today due to central bank board meting, which has monetary issues
on the agenda. It is expected, that CNB will cut the rates by 50bps and also
will comment current EUR/CZK rate. Direct intervention against the koruna is
possible. We anticipate, that only more than 50bps cut may have significant
impact on the koruna. It is also possible, that CNB will continue in so
called hidden interventions in forthcoming days rather than direct
intervention. We expect the EUR/CZK to move in the range of 30.050 - 30.550
and the USD/CZK should be curbed between 30.050 - 30.550.
open high low close today (25.7.)
EUR/CZK 30.260 30.300 30.160 30.240 30.200
USD/CZK 30.550 30.580 30.330 30.450 30.150
Stepanka Kuzilkova, Investment Research, CSOB