The EUR to CZK exchange rate is currently range-bound.
Key drivers include the interest rate outlook from the Czech National Bank (CNB), which anticipates stability and gradual appreciation of the koruna, while the European Central Bank (ECB) is cautious about the euro's strength due to potential inflation impacts. Additionally, the eurozone’s projected GDP growth and the easing of inflation pressures in the Czech Republic support a favorable environment for the koruna.
The expected trading range for EUR/CZK in the near term suggests stability, with movements around current levels reflecting a 1.5% range from recent lows.
An upside risk could arise from positive economic data from Germany, boosting the euro, while a downside risk includes further deterioration in global trade conditions, which may negatively affect the koruna's performance. Fluctuating oil prices, currently declining and near three-month averages, may also influence sentiment in the eurozone.
