Speculations on the future conversion of the money to come within foreign
aid into koruna supported the koruna also yesterday. Although the central
bank Board Member M.Erbenova reported all foreign aid would be converted
outside the forex market, it had no impact on trading, because it was
released in the end of trading.
The koruna firmed against the euro from the
level of 30.930 in the beginning to 30.665. The koruna also strengthened vs.
the dollar from 31.690 to the level of 31.430, while it touched 31.300
during the day. We expect that the yesterdays comment of M.Erbenova could
influence the market today and the EUR/CZK should be curbed between 30.600 -
30.900. The USD/CZK should move in the range of 31.000 - 31.500. Czech
Statistic Office will release foreign trade balance figure in July tomorrow.
open high low close today (21.8.)
EUR/CZK 30.930 30.930 30.610 30.665 30.730
USD/CZK 31.690 31.690 31.300 31.430 31.260
Stepanka Kuzilkova, Investment Research, CSOB