Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
Investing.com - The Czech koruna strengthened against the euro on Tuesday as market expectations for Czech National Bank (CNB) rate cuts moderated, creating room for further currency appreciation.
The koruna’s rally follows a period of exhaustion in July, when the currency struggled to maintain momentum against the euro despite showing strong performance in June. This temporary weakness occurred as markets returned to receiving Czech koruna rates, which undermined the currency’s position.
Tuesday’s spike in Czech koruna rates has created support for the currency, potentially opening a path toward the 24.600 level against the euro despite broader strength in the U.S. dollar. Analysts at ING expect the Czech currency to outperform other currencies in the Central and Eastern European (CEE) region.
The market is currently pricing in approximately half of the anticipated rate cut from the Czech National Bank, though ING believes even this reduced expectation may be excessive. The bank maintains a bullish outlook on the Czech koruna, citing a continuing hawkish monetary policy stance.
Next (LON:NXT) week could bring additional support for the currency as Czech National Bank officials are expected to give interviews ahead of the August monetary policy meeting, with ING anticipating hawkish comments that could further strengthen the koruna’s position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.