Slovak crown ends flat, seen rising further

    BRATISLAVA, Oct 6 (Reuters) - The Slovak crown <EURSKK=> was 
little changed to the euro on Friday but is expected to test 
stronger levels in the coming days, boosted by a calming of 
regional political jitters. 
    The crown firmed throughout the week as London and U.S.- 
based investors pushed it through an important 37.3 per euro 
resistance level. Traders said 37.0 per euro was the unit's next 
solid resistance mark. 
    At 1525 GMT it traded at 37.115, down 0.05 percent on the 
session. 
    "The question now is whether the crown firms through the 
37.100 per euro. If it does, I would look for 36.950 per euro as 
the next level," one foreign bank dealer said. 
    Dealers said the market will watch the leftist government's 
push to approve the 2007 state budget draft's final version, as 
it must be submitted to parliament by Oct. 15. 
    Prime Minister Robert Fico's cabinet is set to trim the 
overall fiscal gap to 3 percent of GDP, the ceiling laid down 
under the euro adoption criteria. Slovakia hopes to meet all 
criteria in 2008 and adopt the single currency in 2009. 
    However, analysts worry Fico's pledge to increase social 
spending could widen the deficit and increase inflation risks 
which would cause a slip in the euro-entry timetable and delay 
the euro-entry date. 
----------------MARKET SNAPSHOT AT 1525 GMT------------------- 
Crown/Euro <EURSKK=> 37.115 vs 37.100 (-0.05 pct) on Thursday 
Crown/Dollar <SKK=>  29.505 vs 29.270 (-0.80) 
5-yr govt bond <SK5YT=RR> yield 4.922/4.623 vs 4.922/4.622 
9-yr govt bond <SK9YT=RR> yield 4.407/4.248 vs 4.481/4.280 
-------------------------------------------------------------- 
 ((Reporting by Martin Santa, editing by Ron Askew; 
martin.santa@reuters.com; Reuters Messaging: 
martin.santa.reuters.com@reuters.net; +421-2 5341 8402)) 
 
  Keywords: MARKETS SLOVAKIA CROWN CLOSE