GBP/CZK Outlook: Slightly positive, but likely to move sideways, as the rate is just above its recent average with no strong drivers pushing it decisively higher or lower.
Key drivers:
• The Bank of England's cautious approach to interest rates contrasts with the Czech National Bank's steadiness, maintaining the repo rate, which supports the koruna.
• Recent trends in global oil prices have been stable, leading to less volatility that could impact both currencies in trade-sensitive contexts.
• The UK's projected GDP growth slowdown could weigh on the pound, while the Czech Republic's robust growth forecast might support the koruna.
Range: Expect GBP/CZK to hold within the established range, drifting slightly as external pressures fluctuate without clear direction.
What could change it:
• An unexpected increase in UK economic activity or significant positive news on employment could strengthen the pound.
• Further US tariffs that negatively impact UK exports may increase pressure on the pound, dragging it lower.
