Yesterday’s foreign trade data supported the
Czech koruna, which reached a two-weeks
high. While the market expected drop of the
deficit to nearly half of the last August’s gap,
the published data was significantly better
(CZK 2.4 bn). Hence, August’s foreign trade
gap was at the lowest level for that month
since 1995, mainly thanks to continued
robust export growth. Nevertheless, during
the day the koruna lost some ground as it
tracked other CE currencies but it still closed
stronger than on Tuesday.
We expect that koruna can slightly
strengthen today but the trading will be
influenced by the technical factors due to the
lack of new impulses. The profit taking is
also possible. The market waits for new CPI
figures (published on Friday) which are
expected to hold steady at 3.4 % and which
can indicate the future CNB action.
ČSOB - Investment Research