The koruna was quiet after Wednesday's decline and traded in the narrow
range of 30.550 - 30.680 and closed at 30.625. Versus the dollar the koruna
softened as the euro erased its previous gains. The USD/CZK opened at
30.930 and closed at 31.090. Today we will likely witness for closing
positions before the weekend, however we anticipate it shouldn't cause any
significant weakening of the koruna. Contrariwise, concerns from Irish no
vote will defend the koruna from strengthening.
We expect the EUR/CZK to be
traded range bound from 30.550 - 30.700 and the USD/CZK to move between
30.850 - 31.300. The koruna opened at 30.620 per euro and at 31.050 per
dollar in the morning. The governor Z. Tuma said on the seminar in
Copenhagen (he repeated the CNB's mantra) that the koruna's strengthening
from the recent months didn't reflect fundamental factors of the Czech
economy and that is why the CNB was ready to intervene if needed.
open max min cls open 11/10
EUR/CZK 30,590 30,680 30,550 30,625 30,620
USD/CZK 30,930 31,065 30,850 31,090 31,090
Stepanka Kuzilkova, Investment Research, CSOB