The Czech koruna ends the day at 28,23 CZK/EUR, slightly stronger than yesterday. No important news were released. Vice governor of the Czech central bank, Miroslav Singer, warned againt the state 2007 budget proposal that he found to be a risk for the national euro adoption target. He however only repeated previously presented stance of the CNB and though the news are neutral.
The CNB has a monetary meeting tomorrow. The interest rates are expected to stay unchanged and the market will rather focus on following statement. Also the ECB will set its rates tomorrow - they should stay on hold. We expect the ECB to prepare the market for an October rate hike.
The USD/EUR calmed down after moves related with yesterday events and so the trading in CZK/USD was also rather calm. But, the koruna ends stronger against the dollar at 22,00 CZK/USD thanks to "overnight" gains.