The Czech koruna fell initially yesterday on
PM Vladimir Spidla resignation. The
EUR/CZK climbed to 32.015. However,
worries quickly waned and the unit retreated.
The koruna started to weakened in the
afternoon again, but the EUR/CZK closed at
31.90 zone, below the key 32.00 level.
The political situation remained unclear.
Some key players are at the NATO summit,
and the crucial person, Mr.Gross, is silent.
All scenarios are possible now, but an early
election is the least likely. Moreover, there is
little chance that we will get new significant information today.
Thus the koruna might be rather calm today.
We expect it will stay in tight range, as .
summer-holiday atmosphere is spreading over the market.
ČSOB - Investment Research