EUR/CZK to target the 25.50 mark in the medium-term – Credit Suisse
|In EUR/CZK, the view of the Credit Suisse analyst team is that improving growth prospects for both the EU and the Czech Republic call for adopting a sell-on-spikes approach to EUR/CZK with a medium-term target of 25.50.
Constructive view on the Czech koruna
“We like selling EUR/CZK on spikes with a short-term target of 25.50. We also see the possibility of a return to 25.30 later in the year. That level is close to levels seen in early March 2020, before covid hit global markets in a major way.”
“We recognise that crowded long-CZK positioning may lead to periodic spikes in EUR/CZK (e.g. back to the 26.00-26.10 range) and also limits the pace at which EURCZK falls. Therefore, we think selling-on-spikes makes sense.”
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