The Czech koruna was pretty quiet on Friday, as it hovered around the EUR/CZK 29.95 level. The last day of the and the Pope’s funeral activity on the FX market. Moreover, the key market of the region, Polish zloty traded only offshore. The parties of former coalition have started talks on new government without PM Gross over the weekend, but discussion was in the real beginning. It seem obvious that Czech ambassador to EU Kohout will lead the cabinet and the main goal of the government will be ratification of the European constitution. The coalition will be likely rather passive in any other field to the regular election in summer 2006.
Today, the activity on the market is empty thus the main incentive might be the EUR/USD action. The weaker dollar in Asian trading opens some room for the zloty to strengthen.
(CSOB - Investment research)