The koruna modestly firmed against the euro

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 brackets.

Martin Kocura, ČSOB