EUR/CZK: A move higher is imminent – ING

EUR/CZK has been in a range of 24.40-24.65 since the last Czech National Bank (CNB) meeting. Economists at ING analyze the pair’s outlook.

Rates once again point to a weaker Koruna

A move higher is imminent. Thursday's rate move showed that the market is ready to start pricing in CNB rate cuts again, and we see that there is still room to move lower. 

Purely based on Thursday's rally in CZK rates, we expect EUR/CZK to return to 24.55 today and we think more to come later. 

The CNB board should be more active in the media again indicating a close call for the next meeting, which should once again open up the discussion about the start of the cutting cycle.