The Czech koruna opened this week just a bit below the 31,00 level

The Czech koruna opened this week just a bit below the EUR/CZK 31.0 level. The trading session was quiet and the currency stayed in a narrow range the whole session. Just for few times the CZK broke the 31.0 level but always found strength to return back. Thus, EUR/CZK closed at 30.970. Today, the koruna may hover around 31.0 again. Tuesday is poor on macroeconomic or political events and the koruna might develop a sideways pattern. However, on Wednesday state budget is released and the Czech government should decide at its regular meeting, how to privatize its 51% stake in Cesky Telecom. So the current expectations that the stake will be public floated together with lower budget deficit might further support the koruna in coming days..

ČSOB - Investment Research