INSTANT VIEW 2-Czech July trade gap CZK 0.7 bln

...far this year, following a 3.39 billion 
deficit in July 2006. 
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KEY POINTS: 
(in bln CZK)           July       June        July fcast 
 balance              -0.73      8.03 (9.32)    0.0 
(nominal y/y change in pct) 
 exports              20.7      14.8 (14.5)     n/a 
 imports              18.7      15.0 (14.0)     n/a 
 
 (For full table of trade data, click on........[nPRA001475]) 
 
- According to seasonally-adjusted preliminary data, exports 
rose 4.8 percent in July from June while imports rose 1.9 
percent month-on-month. 
- The trade balance improved year-on-year thanks to a 2.1 
billion crown rise in the surplus in machinery and transport 
equipment trade. 
- In euro terms, exports rose 21.2 percent and imports by 19.2 
percent year-on-year in July, outpacing the rise in local 
currency terms because of a strengthening in the crown. 
 
COMMENTARY: 
    PETR DUFEK, ANALYST, CSOB, PRAGUE 
    "The deficit is attributable to seasonal effects, so it is 
not necessary to overestimate the first negative result this 
year, especially given that exports are rising by more than 20 
percent. 
    "The number shows that trade is doing well still and the 
results are improving. The trade balance is on the path toward a 
new record full-year surplus." 
     
    JAN VEJMELEK, HEAD OF ECONOMIC STRATEGY AND RESEARCH, 
KOMERCNI BANKA, PRAGUE 
    "The July result is at first glance slightly worse than 
expected, but in reality it is not so.  
    "While expectations had pointed toward a year-on-year 
improvement of 2.6 billion crowns, in reality..the improvement 
was 2.7 billion. That is thanks to a revision of 2006 and first 
half of 2007 DATA. Financial markets should not react." 
     
MARKET REACTION: 
    Crown flat at 27.66 to the euro  after the data. 
  
  
BACKGROUND: 
- Market expectations before release             [ID:nL29913786] 
- Slovak June trade figures                       [ID:nL1018170] 
- Polish trade in June                           [ID:nL13478249] 
- Report on last Czech c.bank rate decision      [ID:nL30781459] 
                                                  [ID:nL3044281] 
 
- For further details on July foreign trade and other past data, 
Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-vzo 
 
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