The koruna broke another records vs. the euro and the dollar

The koruna continued strengthening on Friday. The EUR/CZK touched the level at 29.350 during morning trading and set a new record at 29.180 in the afternoon. The koruna closed at the level of 29.200 against the euro. The koruna gained also against the dollar and reached a new maximum at 29.270, however, it lost slightly in the afternoon and closed at 29.560. The trading was influenced by euro-dollar markets as the three major world central banks intervened against the firming yen.

Czech market will watch closely CNB reaction on the firming koruna this week. CNB is supposed to intervene against the koruna or cut interest rates. If not, the koruna may keep strengthening. The regular CNB meeting is planned for Thursday, however, the decision on rates cut or intervention might come from an extraordinary meeting. We expect the EUR/CZK to move in the range of 29.050 - 29.350. The USD/CZK should move between 29.400 - 29.900.

		open	high	low	close	today (1.7.)
EUR/CZK	29.395	29.480	29.180	29.200	29.230
USD/CZK	29.750	29.770	29.270	29.560	29.400

Stepanka Kuzilkova, Investment Research, CSOB