The Czech FX market followed mostly the development of the parliamentary
discussion on public finance reform and also drew some optimism from the
trade deficit figure released yesterday. The koruna consequently rose vs.
the euro during morning session from the initial level of 32.290 to 32.140.
However, the Czech currency corrected its previous gains in the afternoon
and closed at 32.300. The koruna ignored a statement by Social Democratic
deputy J.Hojdar who said he was leaving his party's club. The USD/CZK
development was similar. The koruna firstly strengthened against the dollar
from the opening level of 28.535 to 28.400. However, the USD/CZK returned
later to 28.480 level. Investors will continue watching the result of the
vote in Chamber of Deputies. The EUR/CZK should move between 32.250 - 32.450
today and the koruna should tend to weaken. It opened at 32.335. The USD/CZK
initiated at the level of 28.450 and should not leave 28.300 - 28.700
Martin Kocura, ČSOB