The trading was almost motionless, the koruna spent the session in the range
30.760 - 30.810, closing at 30.785. As the U.S. dollar posted gains to the
euro on world markets the koruna fell from 31,160 in the morning as far as
to 31,420 and closed at 31,350. The markets are waiting for the result of
Irish referendum, traders are reluctant to open positions.
The koruna didn't
move even after CNB Bank board member Pavel Racocha admitted a further cut
in interest rates yesterday. The impact of the retail sales and wages data
released this morning should be minimal. We anticipate the EUR/CZK to move
between 30.750 - 30.900 and the USD/CZK at 31.200-31.700. This morning the
koruna started at 30.850 per euro and at 31.400 per dollar.
open max min cls open 16/10
EUR/CZK 30.760 30.810 30.760 30.785 30.850
USD/CZK 31.160 31.420 31.160 31.350 31.400
Stepanka Kuzilkova, Investment Research, CSOB