KBC Market Research Desk
KBC Bank
Currencies
EUR/USD
Risk sentiment is the key driver for USD trading. Risk‐off sentiment pushed EUR/USD temporary north of the 1.1534 resistance. Easing global tensions and soft ECB talk finally capped the topside of the euro.
EUR/GBP
Of late, sterling entered a soft spot. UK eco data were a bit less buoyant. Global uncertainty eased BoE rate hike expectations.
USD/JPY
USD/JPY stays under moderate pressure as global uncertainty/market volatility favoured the yen. Uncertainty on the Fed rate path weighs, too.
EUR/CZK
The Czech koruna settled close to the central bank’s (CNB) floor of EUR/CZK 27. The CNB intervenes in the currency market to prevent a CZK appreciation .
EUR/PLN
Global uncertainty and higher market volatility weighs on the zloty. The debate on the conversion of FX loans is a slightly negative for the zloty as well.
EUR/HUF
The MNB has probably reached the bottom of its rate hike cycle. Even so, the forint remains in the defensive. Global uncertainty weighs and the forint probably won’t get interest support anytime soon.
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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