Analyst at Danske Bank Aila Mihr assessed the prospects for the Czech Koruna in the near term.
Key Quotes
“We expect CZK to return to its gradual strengthening path soon, as the Czech macroeconomic backdrop remains favourable compared to the euro area and the CNB is waiting in the wings to deliver another 1-2 hikes this year”.
“We still expect a less steep EUR/CZK deprecation path compared to the CNB, as the Czech economy shifts into a lower gear and the ECB is also gradually moving towards policy normalization”.
“We slightly lower our short-term EUR/CZK forecast profile to 25.50 in 1M (25.70 prev.), 25.40 in 3M (25.50 prev.), 25.00 in 6M, 24.80 in 12M and 24.50 in 16M”.
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