The Czech koruna yesterday surprisingly
ignored positive trend of other regional
currencies and traded around 28.55 for most
of the day. It shortly dropped to 28.62
among some selling interest. However,
many other traders opened koruna-long
positions at that level, because of rebound of
the zloty and the forint. Though the rest of
the region has experienced an improvement
of the mood since the beginning of the week,
the koruna has only little changed. Perhaps
an exchange of some dividends weighted.
Yesterday the gas supplier Transgas said it
paid off its all 2005 profit (CZK 5.2 bn) to its
foreign owners (RWE).
Today the market may wait for the February
current account. The surplus may fall to
only CZK 0.5 bn. That could be slightly
negative. Therefore the koruna may
continue to trade flat, although the
atmosphere in the region is positive.
(CSOB - Investment research)