The Czech koruna opened yesterday at 29.230 EUR/CZK. At the beginning of the session it strengthened a bit as it followed slightly improved regional sentiment after establishment of new government in Poland. Later during the day as it was not successful in breaking through the key support levels at 29,20 and 19,16 EUR/CZK, the koruna started to loose it’s positions and closed weaker at 29.270 EUR/CZK.
During today we believe that current account balance should be more or less balanced and thus better than market expects (consensus –2 bln.). This should play in favor of the koruna, but will probably not provide enough support to break through 29,16 EUR/CZK. Therefore we expect stagnation in a tight belt as well for today.
(CSOB - Investment research)