Yesterday the Czech currency strengthened against the euro from 32.35 in morning trade to 32.0 in the afternoon. The main reason consisted in quiet Central European markets. However, peace and quiet may be temporary only. Current account in Hungary on Wednesday brings usually little optimism. The koruna might be influenced also by the Czech GDP released today. We expect the koruna can keep yesterday's gains. On Monday the koruna opened at 26.550 against the dollar and closed at 26.330.
It opened at 26.195 this morning and should stay in a range of 26.00 and 26.40. The rate EUR/CZK began at 32.035 on Tuesday and should remain between 31.80 and 32.15.
CSOB, Investment Research