The Czech currency made swings against the euro on Friday. The EUR/CZK exchange rate firstly firmed beyond 31.900 from the opening level of 31.975. However, the koruna erased previous gains in the afternoon and touched the level of 32.000 again. The EUR/CZK subsequently closed at 31.990 at the end of the day. Against the dollar, the koruna initiated at 27.890 and firstly strengthened at 27.900. The koruna slipped at 28.100 later due to eurodollar market movements. The USD/CZK closed at 27.870.
A batch of today's data (inflation and unemployment) shouldn't be surprising and we don't expect a significant impact on the koruna. The EUR/CZK should move in the range of 31.900 - 32.100, as it opened at 31.975. Vis-a-vis the dollar, the koruna initiated at 27.760 and should not leave 27.500 - 28.000 brackets.
open high low close today (10.11.)
EUR/CZK 31.975 32.020 31.855 31.990 31.975
USD/CZK 27.980 28.100 27.870 27.870 27.760
CSOB, Investment Research