Yesterday's surprising Czech trade balance surplus only supported the tendency to strengthening of the Czech koruna that was evident as early as on Tuesday when the koruna broke through the boundary of EUR/CZK 33.00. It was obvious that technical factors were playing in its favor. The lowest level reached by the koruna was 32.67 per euro, later it slightly improved. The koruna will apparently sustain a part of these days' gains, however, we do not suppose that it will keep strengthening more conspicuously. The koruna will return to technical trading in the range 32.70 - 33.20 for one euro. A room for more noticeable and permanent strengthening can appear only with decreasing rates in the euro-zone.
ČSOB - Investment Research