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Currencies: EUR/CZK shortly above the 26.0 figure
Czech Republic
The EUR/CZK pair moved higher and even tested the 26.0 level on Thursday. Hence, the Czech currency once again failed to profit from the weak US dollar, which is usually supportive for emerging markets’ currencies. On the other hand, the EUR/CZK might have a problem to break above the 26.0 figure, because this level could look attractive for Czech exporters for FX hedging.
Today, the domestic calendar is empty (if we do not count with ongoing budget debate in the Parliament), so the koruna may continue to hover just below the EUR/CZK 26.0 level, while it will also be watching the performance of the forint and the zloty.
| Currences | change | |
| EUR/CZK | 25.97 | -0.10% |
| EUR/HUF | 265 | -0.50% |
| EUR/PLN | 4.174 | -0.20% |
| USD/PLN | 2.782 | -0.40% |
| EUR/USD | 1.503 | 0.30% |
| USD/JPY | 91.8 | 0.30% |
| Bonds 2Y | change | |
| Czech Rep. | 1.95 | -0.19 |
| Hungary 3Y | 7 | -0.01 |
| Poland | 4.98 | 0 |
| Slovakia | 1.8 | 0.12 |
| Eurozone | 1.44 | 0.04 |
| USA | 1.02 | 0.06 |
| Bonds 10Y | change | |
| Czech Rep. | 4.19 | 0.07 |
| Hungary | 7.33 | -0.02 |
| Poland | 6.15 | 0.03 |
| Slovakia | 4.43 | -0.08 |
| Eurozone | 3.35 | 0.04 |
| USA | 3.46 | 0.06 |
Poland
The zloty stagnated against the euro yesterday. The Polish currency like other neighboring central European currencies lost at the beginning of the session, but rebounded later on. It is worth mentioning that the government decided to postpone this year’s privatization plans that should have brought PLN 12 bln to the state budget. Hence, according to the Polish statistical office this year’s budget deficit will rise to about 6.3% of GDP.
Today, the retail sales disappointed with a decline of -0.7% M/M in September, while the unemployment rate rose more or less in line with expectations to 10.9%. The zloty loses some marginal ground on the releases.
