Yesterday morning the koruna started to strengthen massively and from the
open level of 29.100 rose in while to a new all-time low of 28.850 against
the euro. It stayed below the level of 29.000 during the rest of trading and
closed at 28.945. The trading had mainly technical character. The huge
strengthening of the koruna against the euro as well as the euro versus the
dollar helped the koruna to boost against the dollar too. The USD/CZK reach
the 28.980 level yesterday and closed at 29.310.
Therefore the CNB Bank
Board meeting is held today and even if it has not a monetary policy on the
agenda, we anticipate, that the market will be jittery and will be afraid of
possible interventions. If the CNB doesn't enter the market either this
time, the koruna will have an open route to 28.500. We expect the EUR/CZK to
move in range from 28.800 to 29.200 and the USD/CZK from 29.00 to 29.600.
open max min cls open 11/7
EUR/CZK 29.100 29.100 28.850 28.945 28.940
USD/CZK 29.270 29.380 28.980 29.310 29.270
Stepanka Kuzilkova, Investment Research, CSOB