The Czech koruna broke up strengthening
trend and plunged again on Friday. First, the
unit rose on low July’s trade gap in the
morning and touched the level EURCZK
31.61. Afterwards the unit hovered around
this level. However, a change of S&P rating
of long-term local currency Czech
government debt stopped the trend and the
koruna dropped to EURCZK 31.78 late
afternoon. Nevertheless the activity on the market was pre-weekend low.
Today, the central bank will release more
detailed data on the balance of payments in
the second quarter. The figure might have
little impact on the market because most of
information is already known from monthly
data. However, the negative influence of the rating change should prevail.
ČSOB - Investment Research