The Czech koruna climbed higher
yesterday ahead of today’s foreign trade
release. The unit opened quite strong and
even touched EUR/CZK 31.40 in the
morning. Later on, the koruna stayed at tight
range around EUR/CZK 31.42. The only
factor, which pushes the koruna stronger, is
expectation of today’s low trade deficit.
Today the koruna may continue to rise.
August’s foreign trade posted CZK 2.4 bn
deficit, slightly better than the expectations.
Thus it should be impulse for stronger
koruna. However, the CSU revised July’s
trade gap higher by about one billion CZK,
therefore we should treat the trade data
cautiously. All at all, we see room for the
koruna to move to EUR/CZK 31.30 area.
ČSOB - Investment Research