Czech Koruna: Softer CNB guidance may weigh against euro – ING
ING strategist Frantisek Taborsky says July Czech inflation at 1.7% year-on-year should have limited impact on the Czech National Bank (CNB) meeting. He expects rates to stay at 3.75%, with guidance leaning more dovish than markets.
ING strategist Frantisek Taborsky anticipates Czech National Bank (CNB) guidance for July inflation to be less hawkish than markets. He expects the Czech koruna (CZK) to trade around 24.20–24.25 against the euro, given tightening expectations. Taborsky predicts only one more rate hike, with Czech inflation at 1.7% year-on-year, a slight increase from 1.5% in July.
Lower food prices offset higher fuel prices in July, while services inflation rose to 4.7% YoY. The core inflation remains around 2.8-2.9%. The Czech curve still prices two hikes, the most in EMEA. Overall, market pricing of further tightening keeps CZK relatively weak, with EUR/CZK trading around the 24.20–24.25 range.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
