The Czech currency robustly firmed against the euro right after yesterday's
market opening and broke the level of 30.000. The koruna opened at 30.060
and rose vs. the euro at 29.880. Inflation and unemployment figures had no
significant impact on the EUR/CZK. Strong koruna was a signal for central
bank to intervene and it pushed the koruna back above 30.000. However, the
effect of intervention was only temporary. The koruna started to strengthen
again soon and it closed at 29.960. The USD/CZK was curbed between 30.450 -
30.800 and closed at 30.500.
The market is awaiting GDP figure today. If the
koruna keeps firming, another intervention might be on the way. We expect
the EUR/CZK to move in the range of 29.900 - 30.200 today and the USD/CZK
should remain between 30.300 - 30.800. Unemployment reached 9.4% in August
compared to 9.2% in July. Inflation fell by 0.2% m/m in August and increased
by 0.6% on y/y basis.
open max min cls
EUR/CZK 30.060 30.280 29.900 29.945 30.965
USD/CZK 30.600 30.900 30.400 30.500 30.500
Stepanka Kuzilkova, Investment Research, CSOB