The USD to CZK exchange rate currently exhibits a range-bound bias.
The main drivers influencing this trend include the Federal Reserve’s planned interest rate cuts, which are expected to weaken the USD, and the Czech National Bank's (CNB) stable monetary policy, which supports a firmer koruna. Additionally, easing inflationary pressures in the Czech Republic suggest a strengthening CZK.
Over the next couple of months, the USD to CZK rate is likely to fluctuate within a stable range, reflecting the recent trends. It has recently pushed to 14-day highs near 20.84 and has remained within a tight 3.3% range.
Upside risks could emerge from stronger-than-anticipated US economic performance, which might elevate the USD. Conversely, a downturn in the Czech economy or increased global trade tensions could negatively impact the CZK, leading to depreciation.
