GBP/CZK Outlook: Slightly positive, but likely to move sideways, as the rate is above its recent average but lacks a clear driver impacting momentum.
Key drivers:
- The Bank of England seems poised to hold interest rates steady, suggesting limited upside for the pound against the Czech koruna.
- The Czech National Bank is expected to maintain a stable outlook, with inflation close to the target, contributing to a steady koruna.
- Recent UK manufacturing growth could support the pound, but uncertainty about future interest rate cuts weighs on its performance.
Range: The GBP/CZK exchange rate is likely to drift within its recent range, given the lack of decisive movements from either currency.
What could change it:
- Upside risk could arise from a surprising change in the Bank of England’s policy that signals a more hawkish stance.
- Downside risk may emerge if there are significant signs of slowing UK economic growth or changes in inflation expectations that prompt BoE rate cuts.
