The EUR/CZK reached another peak against the euro. The koruna slightly
weakened against the euro during morning trading from 29.250 to 29.430 due
to concerns of CNB intervention. However, the koruna started firming again
in the afternoon and touched another record at 29.070. The EUR/CZK closed at
29.160. The koruna remained calm against the dollar and moved in the range
of 29.360 - 29.650. The USD/CZK closed at 29.520.
Budget deficit release had
no impact on the koruna. The state budget deficit shrank to CZK 0.9bn in
June from CZK32.4bn reported in late May and in the first half of the year
the deficit reached CZK29.7bn. CNB vice governor L.Niedermayer stated for
BBC yesterday, that current level of EUR/CZK is not in line with economy
development. If CNB don't intervene today the koruna might break the level
of CZK 29 for the euro. We expect the EUR/CZK to move in the range of 29.000
- 29.300 and the USD/CZK should move between 29.350 - 29.850.
open high low close today (2.7.)
EUR/CZK 29.200 29.425 29.070 29.170 29.230
USD/CZK 29.400 29.680 29.400 29.500 29.700
Stepanka Kuzilkova, Investment Research, CSOB