The Czech koruna was even quieter than a
day before on Thursday. It stayed in pretty
tight range of EUR/CZK 31.430 – 31.485 to
close almost unchanged at 31.455. The
market ignored all events. Above all betterthan-
expected 0.3 % rise in PPI.
Nevertheless, the figure hardly change the
central bank view on monetary policy nor the
Czech economy outlook. September’s lower
increase is only a break ahead another jump
inspired by high metal and crude prices.
Today the market should by calm again. The
only important event scheduled is a central
government budget draft first vote in the
Parliament. It’s very likely the draft will be
passed with a deficit of CZK 83.6 bn. The
overall deficit is the only item of the budget,
which MPs decide in the first reading. During
next two readings they will decide on the
structure of the budget. Thus, the koruna
may hover again around EUR/CZK 31.45.
ČSOB - Investment Research