The Czech currency weakened against the euro during Friday's morning trading
from 31.120 to 31.180. However, the koruna erased previous gains in the
afternoon and firmed to 30.920 in the end of trading. The koruna was
supported by publication of the result of the Brussels EU summit where
agreement was reached on the financing of the enlarged EU.
The Czech koruna
strengthened also vs. the dollar from 31.820 to 31.650. Monday's trading was
influenced by a holiday in Czech Republic. Against the euro was the koruna
curbed between 30.840 - 30.940 and the USD/CZK was moving in the range of
31.730 - 31.390 due to development on the euro-dollar markets. The Friday's
strengthening of the koruna could be only temporary as the negative
sentiment against the koruna remains due to forthcoming CNB's Bank Board
meeting on Thursday, as it has monetary issues on the agenda and a rate cut
is expected. We expect the EUR/CZK to move in the range of 30.800 - 30.960
and the USD/CZK between 31.000 - 31.400. The EUR/CZK opened at 30.895 and
the USD/CZK at 31.410 today.
open high low close today (29.10.)
EUR/CZK 31.120 31.180 30.870 30.920 30.895
USD/CZK 31.820 31.890 31.570 31.650 31.410
Stepanka kuzilkova, Investment Research, CSOB