The Czech currency strengthened against the euro due to speculations that
the CNB could intervene on the market. After the end of the CNB's board
meeting, which left the rates unchanged, the koruna started to firm. The
news about the resignation of Freedom Union leader H.Marvanova had no
significant impact on the koruna. The investors also closed their position
before the national holiday and forthcoming weekend. The EUR/CZK reached the
level of 29.480 from 29.415 at the beginning of trading and touched the
level of 29.240 as CNB left the rates unchanged. The EUR/CZK closed at
29.310. The koruna moved against the dollar in the range of 29.935 - 30.195
due to lower activity on the euro-dollar markets.
We expect the EUR/CZK to
move in the range of 29.250 - 29.550 today and the USD/CZK should be curbed
between 29.700 - 30-100. The EUR/CZK opened at 29.400 today and the USD/CZK
at 29.820.
open high low close today (8.7.)
EUR/CZK 29.415 29.500 29.240 29.310 29.400
USD/CZK 30.150 30.195 29.880 29.935 29.820
Stepanka Kuzilkova, Investment Research, CSOB