The EUR/CZK broke through the level of 30.000 during Friday's trading. The
koruna strengthened from the opening level of 30.120 per euro to 29.920.
However, later on it retreated above the 30.000 level and closed at 30.125.
Versus the dollar the koruna initially softened from 30.630 in the morning
to 30.730, but started to rose later again and closed at 30.640. The foreign
trade balance figure for August will be released today. The gently deficit
narrowing is expected in comparison with July's figure. If the figure is in
the line with expectation, we don't anticipate any influence on the EUR/CZK.
Thursday CNB's Bank Board meeting will be the most important event of the
week for the koruna. The EUR/CZK should be curbed between 29.900 - 30.200
today, the CNB will watch its development and could use hidden interventions
again to weaken the koruna. The USD/CZK should not swing out the 30.450 -
30.750 bracket.
open high low close today (23.9.)
EUR/CZK 30.120 30.140 29.920 30.125 30.120
USD/CZK 30.630 30.730 30.480 30.640 30.750
Stepanka Kuzilkova, Investment Research, CSOB