The Czech koruna hovered in the tight
range of EURCZK 31.40 – 31.45 during
almost whole Friday. However, after the
opening of the American markets the koruna
shot up to EURCZK 31.35. The most likely
reason is a closing of some position in euros
in the time when there was little liquidity on
the market. Friday’s development showed
again that the koruna is poised to go higher
despite many negative factors. On Friday,
the biggest Czech brewery company
Plzensky Prazdroj said it would pay CZK 2 bn dividend. Thus, the stream of repatriation
profits does not abate.
Today, no indicator are due, therefore the
market may develop a sideways pattern.
However some traders may try to test a
EUR/CZK technical support at 31.30.
ČSOB - Investment Research