No significant impulse that could influence the Czech currency appeared on
the forex market on Friday. The koruna first weakened against the euro from
31.730 to 31.7750 during morning session, however, the koruna firmed in the
afternoon to 31.620 and the EUR/CZK closed at 31.680. Vis-a-vis the dollar,
the koruna strengthened from 29.320 to 29,220 in the morning and closed at
29.340. Foreign trade deficit figure is released today. The EUR/CZK
development could by significantly influenced in case of worse-than-expected
figure. The EUR/CZK should move in the range of 31.550 - 31.800 and the
USD/JPY should stay between 29.300 - 29.800 today. The koruna opened at
31.700 against the euro and at 29.520 vs. the dollar.
Trade deficit gap narrowed to CZK 3.77bln. in January in comparison to CZK
18.76 bln. in December. The figure beat expectations.
open high low close today (24.2.)
EUR/CZK 31.730 31.775 31.620 31.680 31.700
USD/CZK 29.320 29.400 29.220 29.340 31.520
Martin Kocura, CSOB Investment Research