Even Monday wasn’t exception on the
Czech forex market; the koruna climbed to
a fresh 2-year high again yesterday. The
currency hovered around EUR/CZK 30.79
for the most of the session, but it jumped to
EUR/CZK 30.73 at the end of the US
trading. The trade balance didn’t move the
market, because it posted only slightly
above consensus deficit. Also revision of
balance of payments for third quarter passed
without any impact on the market. It is not
surprising, because the strengthening trend
seems to be rather strong now. It got
another steam yesterday, as the Finance
Ministry revealed its issuance strategy for
the next year (more in the fixed income
section). From the forex market point of view
it’s most important that the ministry seems to
be decided to issue eurobonds at least worth one billion euros in 2005.
Today, the central bank will disclosed
minutes from its last monetary policy setting
meeting. It hardly will draw much attention
as no one could expect rate change in
foreseeable future. Thus, the market may continue to inch higher.
ČSOB - Investment Research