The Czech koruna was waiting for CNB intervention yesterday and kept
softening from 29.400 at the beginning of trading to 29.620. However, the
koruna corrected later yesterday to 29.400 and closed at 29.460. The koruna
also continued losing against the dollar and touched the level of 30.180
compared to 29.980 at the beginning. The USD/CZK closed at 30.030.
The
market will wait for the result of the central bank's board today. However,
the board has no monetary decisions on agenda, the market speculates about
intervention. If CNB doesn't enter the market today, the EUR/CZK could move
closer to the level of 29.000 in forthcoming days. We expect the EUR/CZK to
move in the range of 29.350 - 29.650 today and the USD/CZK should be curbed
between 29.800 - 30.300. The Social Democrats (CSSD) reached agreement with
Coalition parties on a joint programme yesterday. The parties had also
started negotiations on the government line-up.
open high low close today (4.7.)
EUR/CZK 29.460 29.620 29.340 29.470 29.415
USD/CZK 29.980 30.180 29.900 30.030 30.150
Stepanka Kuzilkova, Investment Research, CSOB