The EUR/CZK exchange rate broke 32.000 level

The koruna robustly firmed against the euro on Friday as the political situation calmed down and mostly foreign investors were behind the koruna purchases. The Czech currency rose from the initial level of 32.410 to 32.050 in the beginning of Friday's morning trading. A slight correction appeared later, however, the koruna continued firming in the afternoon again. The EUR/CZK broke the level of 32.000 and touched 31.950. The EUR/CZK closed at 32.110. The koruna strengthened also vs. The dollar as the American currency fell against the euro on the world markets. The USD/CZK opened at 28.770 and closed at 28.306 at the end of the day. Trade deficit figure is released today. This indicator might stay in a shade of the political influences as the market is expecting the parliament meeting to vote on the public finance reform on Tuesday. The EUR/CZK may be volatile these days, some profit-taking could also appear. The koruna should stay in the range of 32.000 - 32.300 as it opened at 32.120. The USD/CZK initiated at 28.110 and should not leave 28.100 - 28.600 brackets.

	  open	  high	   low	 close	 today (22.9.)
EUR/CZK	32.410	32.420	31.950	32.110	32.120	
USD/CZK	28.770	28.770	28.306	28.306	28.110

CSOB, Investment Research