The Czech koruna moved sideways again
on Friday as no significant advance on a
new government forming occurred. The
koruna initially drop to 31.90 zone but later
went up and closed little higher. The unit did
not move over the holidays and it stays at
31.79 Wednesday morning. Designated
Prime Minister Stanislav Gross still miss one
vote to gain a confidence for his
government (coalition of Social democrats,
Christian democrats and the Freedom
Union). He has to buy one vote from either Civic democrats or Communist.
Today, we see koruna will continue to move
sideways due to short work-week and lack of
fresh political news. However there is a risk
of some koruna strengthening because
May’s trade deficit shrank to only CZK 940
m. Nevertheless, trade statistics might be a
bit unreliable now because of the change of
the system how data are collected.
ČSOB Investment Research