EUR/CZK could surge above 24.30 and confirm that CNB is fine with a weaker Koruna – ING

EUR/CZK has been surprisingly stable since last week's CNB meeting. Economists at ING analyze the pair’s outlook.

Zero CNB activity

One may wonder if the CNB is not active in the market again. The available central bank balance sheet data only shows us last week. However, these numbers imply zero CNB activity as expected. 

We think today's inflation numbers may open the way for the market to test higher EUR/CZK above 24.30 and confirm that the central bank is fine with a weaker Koruna.