The market was nervous from Bank Board meeting in the morning, the koruna
was weakening. After the meeting was finished without any decision, the
market calmed and the koruna erased previous losses. The Czech currency fell
during the morning 29.830 to 29.950 and closed at 29.730. The koruna traded
range bound versus the dollar from 29.480 to 29.680.
The retail sales
released for May (+2.6% y-o-y) had no impact on trading. Even today we
expect the market will remain vigilant and will watch the CNB. Therefore the
EUR/CZK should move again from 29.600 to 29.900. The significant
strengthening of the euro versus the U.S. dollar during the night caused
that the USD/CZK had opened at 29.280; today we anticipate the USD/CZK to
move from 28.980 to 29.550.
EUR/CZK 29.830 29.950 29.660 29.730 29.750
USD/CZK 29.640 29.680 29.480 29.500 29.280
Stepanka Kuzilkova, Investment Research, CSOB