Trading in the Czech koruna was calm again yesterday, after opening at
30.460 remained between 30.425 - 30.500 all day and closed at 30.475.
Further developments of the EUR/CZK in long-term horizon will depend on how
quickly the new government is formed. From the short point of view, the
market will watch the GDP figure for Q1 tomorrow.
The koruna showed no major
reaction to yesterday's revised GDP statistics for past years. In 2001, GDP
reached a revised 3.3% y/y, down from the previous 3.6%. GDP growth for 2000
was revised upwards to 3.3% from 2.9%. The koruna firmed against the dollar
from 32.210 in the morning to 32.120 at the end of trading, supported by the
euro strengthening against the dollar. The EUR/CZK opened at 30.500 today
and the USD/CZK at 31.970. We expect the EUR/CZK to remain in the range of
30.430 - 30.630 and the USD/CZK should stay between 31.800 - 32.400.
open max min cls open 19/6
EUR/CZK 30.460 30.500 30.425 30.475 30.500
USD/CZK 32.210 32.230 32.080 32.120 31.970
CSOB, Investment Research