Central European Daily

The Czech koruna has been gradually easing since the Czech National Bank intervened against the koruna and – given the persistent deflation threat – positive news from the real economy can hardly change this trend. Koruna thus ignored better than expected industrial output results yesterday and we believe that today’s foreign trade surplus hardly changes the situation. Today the Czech Statistical Office released results of October’s foreign trade. The data confirmed positive trend, although the surplus of 33.6bn (CZK) was lower than the market expected. It is worth to add that total trade turnover in October was the highest since 1993.