EUR/VZK: Koruna will hit its limit soon – ING

Today, we will see the last Czech National Bank meeting of the year. Yesterday, Koruna reached its strongest level against the Euro in 11 years. However, economists at ING do not expect CZK to gain further ground.

CNB unlikely to provide any surprises

“In line with the market, we expect rates and the FX regime to remain unchanged. The board members have been very open in their talks over the past few days, so we are unlikely to see any surprises.” 

“For now, we believe the Koruna is mainly supported by global conditions, falling gas prices and a weaker US Dollar. In both cases, we believe this is temporary and moreover, the positioning seems mostly long within the region in the case of the Koruna. Thus, we think Koruna will hit its limit soon.”