The Czech currency significantly rose vs. the euro yesterday. The koruna
probably followed the EUR/USD exchange rate development due to an absence of
domestic stimuli. The EUR/CZK opened at the 31.965 level and touched the
31.865 level at the end of the day. Against the dollar, the koruna firstly
softened from the initial level of 29.670 to 29.810. However, the Czech
currency corrected its previous losses and closed at 29.680.
The koruna is
still likely to be driven by eurodollar markets , no domestic fundamental
impulse should appear. We expect the EUR/CZK to move in the range of 31.700
- 31.900, it opened at 31.840 today. The USD/CZK should stay between 29.500
- 29.900. Today's opening level was at 29.730.
open high low close today (4.4.)
EUR/CZK 31.965 31.980 31.810 31.865 31.840
USD/CZK 29.670 29.810 29.580 29.680 29.730
Martin Kocura, Investment Research, CSOB