Yesterday the Czech currency moved in a range of 32.045 and 31.130 per euro. Even today we do not expect any strong movement of the rate. A positive signal for the koruna may come from Hungary, where the government promised to diminish budget deficit to 3.8%. The koruna does not react to fundamental data; even Czech current account released tomorrow may have a limited impact.
The rate EUR/CZK began at 32.100 this morning and should stay between 31.95 and 32.23. Against the dollar the koruna opened at 26.365 and should be traded at 26.00 - 26.60.
CSOB, Investment Research