The Czech currency began Tuesday's trading just below the EUR/CZK 33 level. The trading was quiet. Worries of government success in pushing a law on rents through parliament vanished; it was obvious that the government cannot succeed. Subsequently the refusal of the law had surprisingly little impact on the currency. Value of GDP released today, the consensus is 3% y/y, might change the rate, if the real value differs from the consensus. However, activities from abroad can also influence rates, we are afraid that the sentiment to the koruna remains negative abroad. The rate EUR/CZK opened at 33.055 and should fluctuate between 33.05-33.25. The rate USD/CZK began at 26.925 today and should move in the range of 26.50 and 27.00.
ČSOB - Investment Research