The Czech currency after the initial fall to 30.350 per euro from 30.260
recovered and firstly firmed to the 30.140 level. In the afternoon the
koruna moved below the 30.100 level. The EUR/CZK closed at 30.100. Against
the dollar the koruna rose from 30.880 to 30.630. The koruna strengthened as
the Bank Board meeting ended without any monetary decision, any comments or
intervention against the koruna.
We assume, the market will try to break the
EUR/CZK 30.000 level again, however, we anticipate that this effort won't be
left without any direct answer from the CNB. Then we expect the koruna
should come back above the 30.000 per euro. Due to typically very low
trading volumes on Fridays we shouldn't exclude intervention as early as
today. Today the EUR/CZK should move in range 29.980 - 30.280 and the
USD/CZK from 30.500 to 30.950. The koruna started trading at 30.120 per
euro and at 30.630 per dollar today.
open max min cls open 20/9
EUR/CZK 30,260 30,350 30,050 30,100 30,120
USD/CZK 30,880 30,910 30,600 30,630 30,630
Stepanka Kuzilkova, Investment Research, CSOB