Yesterday, the rally of the Czech koruna
continued to a new 11- month high. The
koruna reached a 31. 270 level against the
euro and it seems to be nothing to stop
strengthening of the Czech currency.
However, the koruna tried to depreciate at
the beginning of day, but this attempt lasted
short time only. Later the koruna was again
supported by the CNB rate hike expectations
and sales of the CNB reserves as well.
A part of the market watches closely today’s
release of the current account.
Nevertheless, this figure is only a revision of
previously published monthly data. The
EUR/CZK 31.250 level might be important. If the koruna will breach this level, it could
boost to 31.00 against the euro. On the
other side, the risk of profit taking is
increasing as the koruna gained almost 4 pct
against the euro during the last five weeks.
ČSOB - Investment Research