The Czech koruna was pretty calm
yesterday. It mildly retreated from previous
high, but it kept in rather tight range of
EUR/CZK 30.22-30.31. The strong
November industry output failed to affect the
market. The industry output rose 10.9 %
Y/Y, slightly behind the market forecast. It
confirms that industry is doing well, but the
momentum is not as high as two more
working days and strong exports suggested.
The market seems to be careful, there is no
real interest to buy into korunas. Investors
may wait for tomorrow’s current account data. The really low November C/A deficit
(due to already known trade balance
surplus) may push the EUR/CZK below
30.20. Nevertheless, the market may lack
any incentives today. Thus sideways pattern
is the most likely scenario.
ČSOB- Investment Research