On Friday, the Czech currency was slightly
stronger, supported by the positive
sentiment on the regional markets. The
koruna slightly eased in the morning but
later started to gain and closed at 28.45
EUR/CZK.
As in previous days, the koruna again
fluctuated in a narrow range. The currency
still ignores the unclear political situation and
it keeps an eye on the region and on eurodollar.
In a longer term perspective, koruna
remains supported by the positive
fundamentals but short-term, a slight easing
is possible due to the widening of the
interest rate differential and dividend outflow
in summer.
The market gradually is counting down to
next week’s CNB decision, which could be
important for the koruna. Today the calendar
is empty and so the koruna will watch the
region and euro-dollar trend. We again
expect trading in narrow range of 28.40-
28.60 EUR/CZK.
(CSOB - Investment research)