The Czech currency corrected previous losses against the euro in the
beginning of trading from the initial level of 31.870 to 31.860. However,
the trend reversed later and the EUR/CZK reached 31.920 level at the end of
trading. The koruna ignored statistical data released yesterday, didn't even
react to the Finance ministry's new macroeconomic prognosis in which the
ministry slightly raised the forecast of GDP growth for this year and
lowered estimated average inflation.
Vis-a-vis the dollar, the koruna firmed
in reaction to the eurodollar markets development. The USD/CZK initiated at
28.570 and closed at 28.470. No important data are released today. The
koruna should fluctuate around current levels, still tending to weaken
slightly. We expect the EUR/CZK to move in the range of 31.800 - 32.000,
while it opened at 31.935. The USD/CZK opened at 28.430 and should not leave
28.300 - 28.700 brackets.
open high low close today (17.7.)
EUR/CZK 31.870 31.940 31.860 31.920 31.935
USD/CZK 28.570 28.620 28.450 28.470 28.430
Martin Kocura, Investment Research, CSOB