This week is critical for the Koruna as central banks in the CEE region prepare for important announcements. Frantisek Taborsky from ING expects mixed signals from PMIs and inflation data that could influence monetary policy. The Koruna’s performance will depend on upcoming inflation figures, with potential volatility expected.
Judgment day for the koruna
“However, the January number in the Czech Republic is highly volatile, and a surprise to the downside could bring a rate cut as early as this week’s meeting.”
“EUR/CZK is expected to be in the range of 24.350-400, which is where it should enter Thursday’s meeting, and we see the risk of further upside if our dovish expectations are confirmed.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/czk-critical-week-for-czech-koruna-ing-202602021213
