The Czech currency fell against the euro, broke the level of 31.000 and
reached 4.5-month low. The EUR/CZK was moving between 30.680 - 30.820 during
morning session and was not affected by the lower-than-expected industrial
output figure. The koruna continued weakening in the afternoon, broke the
level of 31.000 and touched 31.100, where it also closed. The koruna slump
was not probably aided by CNB. The koruna also softened vs. the dollar from
the morning level of 31.680 to almost 31.000 and closed at 31.970. We expect
technical trading again today, there are no important data to be released.
The EUR/CZK should be curbed between 30.850 - 31.150 and the USD/CZK should
move in the range of 31.600 - 32.100 today. Industrial output grew by 1.3%
y/y in June compared to 5.1% in May. But adjusted for the number of workdays
industrial output increased by 3.5% in June.
open high low close today(12.8.)
EUR/CZK 30.720 31.100 30.680 31.100 31.050
USD/CZK 31.680 31.970 31.630 31.970 31.900
Stepanka Kuzilkova, Investment Research, CSOB