The Czech currency broke the level of 30.000 koruna per euro again after two
months. The new-all time high is 29.770. It also reached a new maximum
against the U.S. dollar yesterday, at 30.620.
The Czech currency strengthened from morning level of 30.175 during a short
while at 29.770. It lost a part of the gains during the day, but stayed
below the EUR/CZK 30.000 level. The koruna closed at 29.900. The reason for
such strengthening were large koruna's purchases, which consequently caused
breaking through of stop-loss levels. Against the U.S. dollar the koruna
rose for the present due to development of the EUR/CZK. It rose from 31.055
in the morning to 30.620 and closed at 30.810. Looking at the levels the
koruna reached yesterday we expect the trading to be nervous as the monetary
policy is on the agenda of tomorrow's CNB meeting. The EUR/CZK should stay
in range from 29.800 to 30.100 and the USD/CZK should move from 29.920 to
30.800. This morning the EUR/CZK opened at 29.920 and the USD/CZK at 30.310.
open max min cls open 26/6
EUR/CZK 30.175 30.175 29.770 29.900 29.920
USD/CZK 31.055 31.055 30.620 30.810 30.310
(Stepanka Kuzilkova, CSOB Investmnet Research)