Due to the maintained bullish sentiment, the koruna opened at 30,250 per
euro. However, it didn't keep the gains and gradually drew back as far as to
30.650 around 1 p.m. Then it rebounded and stabilized on the 30.500 level,
closing at EUR/CZK 30.480. Vis-a-vis the dollar the Czech currency opened at
31.270 and remained in the range of 31.200 - 31.350 all day long.
direction of today's trading should be determined by September foreign trade
deficit release. We anticipate that the trade balance will be roughly
balanced. It should give to koruna at least short-term positive impulse.
Larger deficit should hit the koruna. We expect the EUR/CZK to move in the
range of 30.380 - 30.680 and the USD/CZK within 31.150 - 31.650. The koruna
opened at 30.445 per euro and at 31.315 per dollar in the morning.
The foreign trade deficit for September unexpectedly widened to CZK 12.6 bn.
However, the koruna remained stable.
open max min cls open 22/10
EUR/CZK 30.250 30.650 30.250 30.480 30.445
USD/CZK 31.270 31.350 31.200 31.320 31.315
Stepanka Kuzilkova, Investment Research, CSOB