Czech currency continued to soften vs. the euro on Wednesday. The koruna
fell from the level of 29.500 at the opening to 29.820. However, it firmed
modestly during afternoon trading and stabilized around 29.700. The EUR/CZK
closed at 29.740. Another koruna sell-out and purchases of the euro were
behind the weakening, supported by CNB comments on possible intervention.
The koruna was also losing against the dollar yesterday as the dollar firmed
vs. the euro. The USD/CZK reached the level of 29.520 from 29.120 at the
beginning of trading. Retail sales figure was released today. We don' t
anticipate any significant impact on the koruna. Today's CNB board meeting
has no monetary issues on the agenda. We expect the EUR/CZK to move in the
range of 29.650 - 29.900 and the USD/CZK should stay between 29.400 -
29.800. The EUR/CZK opened at 29.830 today and the USD/CZK opened at 29.640.
open high low close today (18.7.)
EUR/CZK 29.500 29.820 29.490 29.740 29.830
USD/CZK 29.120 29.560 29.060 29.520 29.640
Stepanka Kuzilkova, Investment Research, CSOB