The trading was nervous until the morning, after a statement that the CNB
has unexpectedly a monetary policy on the agenda the koruna had already a
tendency to fall slightly. The koruna's decline itself was contributed by
the CNB's midday statement. The Central bank meeting ended, no action was
announced. In statement the CNB says: "The central bank has been watching
with dissatisfaction the exchange rate's development in the past weeks and
is ready to use monetary policy instruments." Versus the U.S. dollar the
koruna weakened by cca 40 hallers.
We expect that also today's trading will
be nervous, because interventions are possible anytime. The EUR/CZK should
move in range 29.000 - 29.600 and the USD/CZK from 29.300 - 30.200.
open max min cls open 12/7
EUR/CZK 28.945 29.410 28.880 29.350 29.300
USD/CZK 29.270 29.790 29.270 29.650 29.600
Stepanka Kuzilkova, CSOB, Investment Research