The first strengthening was caused by a bigger client's order that easily
succeeded to break a stop-loss level on the thin market. The other wave came
after the CNB left its key interest rates unchanged and made little comment
on the recent mild gains of the local currency. The CNB governor Z. Tuma
told on a press conference that he didn't expect any "shock" on the foreign
exchange market. Firstly the koruna rose from 30.640 in the morning to the
30.550 level. After the press conference the koruna broke the 30.500 level
and firmed as far as to 30.430. It closed at 30.480. The strengthening of
both the koruna versus the euro and the euro versus the dollar helped the
koruna to boost against the dollar. The domestic currency rose from 31.180
in the morning to 30.860 and closed at 31.000.
The optimistic mood from
yesterday should be mared by profit taking, by concerns from possible CNB
comments on the koruna or by the reluctance to keep open position during the
coming weekend. Therefore we anticipate the koruna should fall back above
30.500. Our range for today is 30.420 - 30.570. This morning the EUR/CZK
opened at 30.470 and the USD/CZK at 30.920.
open max min cls open 30/8
EUR/CZK 30.640 30.650 30.430 30.480 30.470
USD/CZK 31.180 31.180 30.860 31.000 30.920
Stepanka Kuzilkova, Investment Research, CSOB