The koruna stays near the 30,00 level

Czech koruna drifted higher again yesterday and it’s as strong as before the rate cut. The unit opened stronger and it touched the closely watched level EUR/CZK 30.00 in the afternoon to close at 30.06. The question is the same like last week: when the koruna break through the EUR/CZK 30.00 level. The market sentiment is now pretty supportive for successful action. We regard only Friday’s trade data as only drag of the strengthening trend.

Thus the level may resist today. The market should ignore short-term government bond tender. Therefore the koruna may be captured in the range 30.00-30.15. Of course, any comment from the central bank on koruna may affect the market.

ČSOB