The koruna firmed slightly vs. The euro and the dollar yesterday

The Czech currency stayed relatively calm against the euro yesterday and the EUR/CZK exchange rate was curbed between 31.800 - 31.970. The market currently trusts that the government will gain the confidence vote in the Chamber of Deputies. The koruna closed at the level of 31.800 in comparison to initial level of 31.900. The USD/CZK was moving in the range of 27.680 - 27.800 during the morning, however the koruna strengthened to the closing level of 27.600 while it opened at 27.760. Confidence vote in the Chamber of Deputies starts at 9:00 a.m. today. The koruna might firm slightly vs. The euro as the vote is in line with expectation. However, this result may be priced in the current EUR/CZK exchange rate. The EUR/CZK should move in the range of 31.650 - 31.850 as it opened at 31.730. Vis-a-vis the dollar, the koruna initiated at 27.630 and should not leave 27.400 - 27.900 brackets.

	  open	  high	   low	 close	 today (26.9.)
EUR/CZK	31.900	31.970	31.800	31.800	31.730
USD/CZK	27.760	27.780	27.600	27.600	27.630

CSOB, Investment Research