The EUR to CZK exchange rate is currently range-bound.
Key drivers influencing this situation include a stable interest rate outlook from the Czech National Bank (CNB), with expectations of the koruna appreciating slightly in the coming years. The European Central Bank (ECB) remains data-dependent in its approach, balancing inflation control with economic growth, thus impacting the euro's strength. Additionally, the projected economic growth within the eurozone adds support to the euro.
In the near term, the EUR/CZK is likely to trade within a stable range, maintaining levels around recent highs. Upside risk could arise from improved geopolitical conditions in the EU, while downside risk might come from renewed global trade tensions, particularly stemming from US tariffs on European goods.
Recent oil prices showing volatility could also indirectly influence exchange rates, as fluctuations in energy costs can have broader economic implications, particularly for the eurozone.
