The current market bias for GBP to CZK is range-bound.
Key drivers include the interest rate differential between the Bank of England and the Czech National Bank, with the former expected to reduce rates as inflation declines, while the latter maintains a stable outlook. Risk sentiment is affected by global trade tensions, especially U.S. tariffs, that may influence both currencies. Additionally, slower economic growth in the UK and cautious inflation trends will weigh on the pound.
In the near term, expect the GBP to trade in a stable range, slightly above recent averages.
Upside risks include positive surprises in UK economic performance that could boost the pound. Downside risks stem from persistent global trade tensions negatively impacting sentiment toward both currencies.