EUR/CZK expected to remain rangebound near term – Danske Bank

Pablo Piovano FXStreet

The Czech Koruna is seen extending the sideline theme vs. its European peer for the time being, suggested Analysts at Danske Bank.

Key Quotes

“Despite the June CNB hike, EUR/CZK continues to trade around 25.90 and we project the cross to continue to hover around current levels in the short term”.

“In the medium term, we expect the CZK to return to its moderate strengthening path, as the Czech macroeconomic backdrop remains very favourable and the CNB is likely to deliver its next interest rate hike within the coming months”.

“This said, we expect the depreciation pace to abate compared with 2017, as the Czech economy shifts into a lower gear and the ECB is also gradually moving towards policy normalisation. We leave our forecasts for EUR/CZK unchanged at 25.70 in 1M, 25.50 in 3M, 25.00 in 6M and 24.80 in 12M”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.