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