Trading on the FX market yesterday was marked by a lack of interest on the
part of investors and the koruna stayed between 30.740 - 30.770 most of the
time. There was nothing happening on the eurodollar market either because of
a holiday in the U.S. Versus the dollar the koruna started at 30.160 and
closed slightly stronger at 30.120. The key event for the koruna's further
development is the Irish referendum on Saturday. Public opinion polls are
mostly unfavourable and a potential "nay" would delay the entry of the
candidate countries to the EU.
Until the announcement of the result, the
koruna should stagnate at the current level, we expect the EUR/CZK to be
rangebound within 30.650- 30.850. The koruna opened at 30.760 per euro and
at 31.160 per dollar in the morning. The CNB's governor Z. Tuma said on
Monday that the strong koruna, coupled with weak foreign demand, gave some
room for possible further rate cut.
open max min cls open 15/10
EUR/CZK 30,795 30,800 30,700; 30,754 30,760
USD/CZK 31,160 31,180 31,060 31,120 31,160
Stepanka Kuzilkova, Investment Research, CSOB