The Czech currency ends slightly lower today in line with negative regional mood and eurodollar move. The exchange rate closes at 28.37 CZK/EUR, down by some 3 hellers, and at 22.48 against the US dollar, up by 5 hellers. The local PPI data and balance sheet details had no impact on the Czech currency.
Global investors‘ attention was focused on today‘s US May inflation data as an indicator of future interest rate’s moves. The core consumer price index, excluding food and energy prices, rose a greater-than-expected 0.3 %, and the annual main rate reached 4.2 %. The dollar rose as much as 1.2528 USD/EUR but later fell back to 1.2626. Investors who were long dollars before the announcement became a bit confused as the data did not answer the question of Fed rate up-move in August.
The Czech koruna will probably stay in trading range limited by historical maximum of 28.10 CZK/EUR and technical border 28,48 CZK/EUR till the end of this week.