On Tuesday, the Czech koruna firmed to an April high against the euro in early trade but later the koruna lost its gains, probably influenced by the firming dollar, and it closed slightly weaker at 29.95 EUR/CZK. Yesterday the Czech Telecom was privatized to Spanish Telefónica for nearly EUR 2.75bn but the whole operation will be realized out of the market.
Today, the February current account will be published and the market expect CZK 1.8bn surplus. But we don’t think that C/A numbers influence the market significantly. The koruna also ignores continuing political instability. It rather follows a development of the core markets. Therefore we expect fluctuation within the range of 29.80-30.00 EUR/CZK today.
(CSOB - Investment research)