The Czech koruna lost slightly yesterday as a result of positioning caused by the euro strengthening. Yesterday the koruna started below 30 per euro and firmed to 29.88 but later weakened slightly above 30.00 per euro. Now the period of dividends starts and therefore the koruna could be more volatile compared to other currencies in the region. Today, the market watches the C/A data for April. The market expects the C/A deficit CZK 1.6 bn but in our opinion a mild surplus is not excluded. In either event the season of huge C/A surpluses passed. The koruna can fluctuated around the level 30 per euro today and will eye the euro dollar development and nervousness in the Polish market before no-confidence vote of the Finance Minister.
(CSOB - Investment research)