The Czech currency opened against the euro at the level of 32.415 and
modestly weakened during the morning session. The main slump of the koruna
appeared before the end of trading as the EUR/CZK touched 32.630 level. The
koruna closed at 32.605. Concerns on political instability still prevails on
the market. However, the government discussion was postponed at September
17. Balance of payments release had no impact on the koruna. The USD/CZK
attacked the level of 30.000 several times and finally closed at 29.920
level, where it also opened.
No important data are released today, the
koruna could correct some of its previous losses against the euro. However,
political threats could push the koruna to weaker levels in following days
again. The EUR/CZK should be curbed between 32.500 - 32.700 today, as it
opened at 32.600. Vis-a-vis the dollar, the koruna initiated at 29.750 and
should not leave 29.700 - 30.100 brackets.
open high low close today (5.9.)
EUR/CZK 32.415 32.630 32.405 32.605 32.600
USD/CZK 29.920 30.010 29.900 29.920 29.750
Martin Kocura, Investment Research, CSOB