Wednesday, June 13, 2007

CZK the weakest in 9 months against EUR

Czech currency koruna (CZK) reached today 9 months low against EUR at 28.56 CZK for 1 EUR. It is mainly because of differences between higher euro interest rates and czech rates which making more attractive EUR investments. Next is rising yield of US bonds which has impact on outflow of capital from emerging markets like Czech Republic. But also obscure economic reforms in Czech Republic doesn't help CZK to gain.

Altough all those factors are important I see good time to entry with CZK and speculate on strenghtening czech currency below 27CZK for 1 EUR. Just look at the czech economic growth and compare with western european countries.


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