The Czech koruna opened weaker at
EUR/CZK 31.485 on Friday, but it stayed
little changed for whole day. The unit hover
in the tight range of EUR/CZK 31.480-
31.535. The trading session was rather
boring with quite low activity, but the market
still feels some weakness and loses slowly
ground.
As expected, PPI figure didn’t move the
market. October’s producer price index was up by 1.1%, which is more or less in
accordance with expectations. As every
year, mainly higher electricity prices caused
by October’s introduction of winter price lists
fuelled the rise in the price level. Another
contributor to this year’s PPI rise is the
refining industry, where prices resumed
rising significantly after September’s pause.
Nevertheless the rise in producer prices
should not make the central bank change its
current stance on not raising interest rates.
Today the market will watch a current
account figure. It may bring some relief on
the market because it should post
considerably lower deficit than a month ago.
Nevertheless traders are more or less ready
for such positive result, thus we do not
expect a sharp reaction.