The Czech currency broke the level of 29.000 koruna versus the euro as well as versus the U.S. dollar on Wednesday

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