The Czech currency opened against the euro at the level of 31.630.
Worse-than-expected GDP data for 2002, released yesterday, pushed the koruna
down to 31.710. The same trend prevailed for the rest of the day and the
EUR/CZK closed at 31.750. Against the dollar the koruna also weakened from
the initial level of 29.740 to 29.920 influenced by development on the
eurodollar markets. The USD/CZK closed at 29.920. No important data are
released today, geopolitical situation is supposed to play the main part.
The EUR/CZK should move in the range of 31.620 - 31.800 and opened at 31.740
today. The USD/CZK should not leave 29.600 - 30.100 brackets. Its opening
level was at 29.920 today.
Gross domestic product rose only by 1.5% y/y in Q4 2002. Czech statistical
office also significantly revised down Q3 growth from previously reported
2.7% to 1.7%. GDP momentum was gradually declining during last year from
2.6% in Q1 to 1.5% at the end of the year. GDP rose by 2.0% in full year
terms. Recent GDP data support further interest rate cut.
open high low close today (21.3.)
EUR/CZK 31.630 31.785 31.620 31.750 31.740
USD/CZK 29.740 29.920 29.740 29.920 29.920
Stepanka Kuzilkova, Investment Research, CSOB