The Czech currency continued in its falling trend from Friday and extended
its losses against the euro. The EUR/CZK reached 31.865 level during the day
in comparison to its initial level of 31.810 The EUR/CZK closed at 31.860
and wasn't influenced by PPI figure release. Vis-a-vis the dollar, the
koruna followed the eurodollar market development. The USD/CZK opened at
28.210 and the koruna firmed to 28.170 during the session in reaction to
weakening of the dollar against the euro. However, the trend reversed later
and the koruna erased some of its previous gains. The USD/CZK closed at
28.220.
Current account gap in May is released today. The koruna might be
influenced only in case the figure will be significantly different. The
koruna should tend to weaken. The EUR/CZK should be curbed between 31.750
31.900, while it opened at 31.840. Against the dollar, the koruna initiated
at 28.240 and should not leave 28.000 - 28.400 brackets.
open high low´ close today (15.7.)
EUR/CZK 31.810 31.865 31.800 31.860 31.840
USD/CZK 28.210 28.270 28.170 28.220 28.240
Martin Kocura, Investment Research, CSOB