The Czech currency sharply weakened against the euro in the morning trading
from 29.300 in the beginning to 29.680. There were rumours on the market,
that CNB was purchasing the euro to soften the koruna. However, this
information is not confirmed. The PPI and industrial output figures had no
significant impact on the koruna. The USD/CZK was influenced by euro-dollar
markets and the koruna softened also against the dollar. The EUR/CZK was
moving between 29.600 - 29.990 on Friday.
There are no important figures to
be released this week, except of retail sales. The koruna might be
influenced mostly by technical factors. We expect the EUR/CZK to move in the
range of 29.200 - 29.450 today and the USD/CZK should be curbed between
29.300 - 29.700. The EUR/CZK opened at 29.360 and the USD/CZK at 29.500. The
industrial output slowed down to 5.1% in May compared to 8.2% in April.
Czech industrial producer prices (PPI) dipped by 0.1% m/m in June after 0.2%
drop in May and by 0.8% y/y against an 0.5% decline in May.
open high low close today (15.7.)
EUR/CZK 29.300 29.680 29.270 29.360 29.360
USD/CZK 29.600 29.990 29.550 29.630 29.500
Stepanka Kuzilkova, Investment Research, CSOB