Despite a lot of events on the Czech market
the koruna stayed rather quiet yesterday. It
hovered in almost the same range as on
Monday, EUR/CZK 31.35-31.40, for the
most of the day. Later on, the unit got under
light pressure and inched lower to close at
EUR/CZK 31.43. The market ignored
worse-than-expected industrial growth and
CNB Board meeting minutes. The
weakening is likely consequence of a
Hungarian forint drop. American were the
most active seller of korunas.
Today the koruna may mildly fall due to
August’s current account release. Moreover,
all yesterday’s events were against a near
interest rate hike, which is negative for the
koruna. Furthermore, a debate over the central government budget draft starts today
in the lower house of the Parliament. The
first vote in the three required readings of
the budget draft is due on Friday. MPs
decide only about overall revenues and
expenditures in the first reading.
ČSOB - Investment Research