The Czech koruna consolidated yesterday near its high reached a day before

The Czech koruna consolidated yesterday near its high reached a day before. It was little changed for almost whole domestic session, as it hovered at range EUR/CZK 30.88-30.92. Nevertheless, the koruna rose further just at the end of the European trading and climbed to new 2-year high of EUR/CZK 30.845. Thus it’s apparent the market evaluated a government decision on Cesky telecom privatization as slightly positive for the market. Thus the EUR/CZK likely established its trading band bellow the 31.00 level. There is some risk of the koruna weakening ahead of the year end, as many players are short of euros now and they may square its position and take profits before the year end. Today the market may fortify its new levels, hence the koruna may develop sideways pattern. The calendar is empty.

ČSOB - Investment Research