The Czech currency slumped against the euro as the government crisis
continues. The EUR/CZK fell immediately after the market opening from the
level of 30.310 to 30.470. Retail sales figure, although
better-than-expected, had no significant impact on the koruna. However, the
market got calm in the afternoon and the EUR/CZK stabilized around the level
of 30.400. It closed at 30.380. The EUR/CZK also didn't mind a prime
minister's announcement, that the government together with central bank will
resolve to maintain the koruna's exchange rate within reasonable limits. The
koruna stayed calm also vs. the dollar and was curbed between 31.240 -
31.500.
We don't expect any important data to be published today, the
investors will carefully watch further government coalition development. We
anticipate, that current crisis will be solved without any impact on country
stability and the koruna should not significantly weaken against the euro.
The EUR/CZK should move between 30.200 - 30.500 today and the USD/CZK should
be curbed in the range of 31.300 - 31.700.
open high low close today (17.9.)
EUR/CZK 30.310 30.480 30.285 30.380 30.400
USD/CZK 31.280 31.500 31.240 31.240 31.470
Stepanka Kuzilkova, Investment Research, CSOB