On Wednesday, the same story repeated as
in previous days. Closing positions on
USD/CZK by foreign investors led to some
pressure on EUR/CZK. The koruna slightly
strenghten to 31.60 per euro in the morning, but the end of trading session was
traditionally in token of the koruna
weakening. The koruna touched the 31.75
level.
Today, the koruna will wait for Banking
Board’s interest rates decision. The
surprising hike in June implies that the central bank is prepared to tighten up
monetary policy. The Banking Board will
also discuss Inflation report that might be
reason for another change in monetary
policy. However, presence on this meeting
(influenced by summer holidays) may
postpone such a (rate hike) decision.
ČSOB - Investment Research