On Tuesday, the Czech koruna held
steady, traded most of the day very close to
31,64 level per euro. An attempt to push up
the koruna to 31.50 level in the morning did
not succeed. Nevertheless, selling orders
appeared at the end of the trading session
and the koruna dipped to 31.74 per euro.
The market is waiting for the CNB meeting
on Thursday. It seems that two-week repo
rate will remain on current level 2.25%.
However, keeping interest rates unchanged
will pose a risk to the koruna and could
result in its losses against the euro.
Formation of a new government headed by
Stanislav Gross met low interest of the
market. We expect that today’s trading will be in line with Tuesday‘s session.
ČSOB - Investment Research