The Czech koruna flirts with the EUR/CZK 30.00 level. It broke through the level shortly after opening at 30.00 yesterday. The koruna touched the daily high at 29.95 few minutes later. Later on, the market reversed the previous trend and slowly weakened to close at the EUR/CZK 30.04 level. We have to repeat that there was no domestic fundamentals behind the price action, but overall positive sentiment in the region. The only event worth to mention is rumor that bidders in the Cesky telecom tender will submit lower prices than the government expects. It rises chance that the Government will sell the stake on the capital market, which is positive for the koruna.
Today the key event is the December trade gap release. Nevertheless, expected high deficit is seasonally inspired, thus it should be neutral for the market. Hence, since the trade balance surprised on the upside (see the News section), the koruna may definitely try to break the EUR/CZK 30.00 level.
ČSOB - Investment research