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CNB hawkishness seen stabilizing Czech koruna against euro
ING expects EUR/CZK could fall below 24.15 if US-Iran tensions do not escalate materially.
FXStreet reports ING strategist Frantisek Taborsky says the Czech National Bank’s hawkish stance is helping stabilize the Czech koruna (CZK) versus the euro, with more than two CNB rate hikes priced in by markets.
ING also links near-term CEE FX moves to external drivers, saying US-Iran tensions and oil prices remain the key factors, even as Poland and the Czech Republic show constructive regional data.
Taborsky notes that while currencies briefly gained, CEE FX failed to hold those moves and ended only marginally stronger, with rates markets appearing to stabilize after elevated volatility.
According to FXStreet, ING is bullish on CZK and expects EUR/CZK to grind lower from around 24.30 last week, with a potential move below 24.15 if the conflict does not escalate.