The Czech koruna climbed to a fresh 2-year
high on Friday after one day consolidation
on Thursday. The currency opened at
EUR/CZK 31.20 and it was attacking 31.15
in the morning. Nevertheless, the trading
action wasn’t so hectic. However, foreign
banks again used fading liquidity in the
afternoon and aggressively pushed the
EUR/CZK below the psychological level of
31.00. As in the previous days, there vas no
particular reason for the movement. The
only factor behind are bets on privatization
of Cesky Telecom via stock exchange.
Today the calendar is empty, the market
may focus on the central bank’s monetary
policy setting meeting on Thursday.
Nevertheless, the change of the interest
rates is highly unlikely. Moreover, we do not
expect neither strong words about the forex neither strong words about the forex
market. Thus the market may fortify its new
position in the 31.00 zone today.
ČSOB - Investment Research