The Czech koruna initially rose, as MP
Marian Bielesz open the way for the
approval of the new government. He
resigned yesterday whereby PM-designate
Stanislav Gross gained key parliamentary
seat, which he needs to form a new
government (a loyal supporter of the
coalition will replace Mr. Bielesz) Therefore
the koruna touched 31.355. However, a
profit taking at this level was strong and the unit was falling the rest of the trading
session. Moreover, the renew coalition will
be even weaker than former government.
The new government has thin majority of
only one vote. Thus, we could not expect
deep fiscal reforms in next two years.
Today, we expect the koruna to move
sideways. On Friday, the activity is usually
lower. Moreover, we do not expect any
decisive news on forming a new cabinet.
ČSOB - Investment Research