The koruna weakened against the euro and the dollar

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