The koruna´s yesterday depreciation was affected by the state budget deficit numbers

The Czech koruna weakened from 33.12 to 33.25 for one euro, but this boundary remained unbroken. The koruna was negatively affected by the Eurostat report on the state budget deficit and by the statement of the CNB vice governor Dedek who said the day before yesterday that the interest rates would grow probably later than sooner. This statement indicates that the koruna will have a limited space for strengthening in forthcoming months and that only possible decreasing of rates in EMU can change the sentiment on the market. Today we suppose that the koruna will exceed the boundary of 33.25 CZK/EUR. Today's retail sale will remain unnoticed.

CSOB - Investment Research