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CEE FX: ING Say EUR/CZK Likely Close to Its Peak

CEE FX
  • After yesterday's weakening of the CZK, ING think EUR/CZK is close to its peak, carefully following the falling rate differential after the larger-than-expected CNB rate cut last week. However, they add that it is probably too early to turn bullish here.
  • On the other hand, PLN and HUF should have an easier time but even so, space for a rally seems limited. After yesterday's paying flow, PLN seems most attractive at current levels within the region, ING write, which could be helped by the traditionally hawkish NBP press conference later this week.
  • EUR/HUF seems quite mixed at current levels and shouldn't see much momentum this week. While HUF may seem cheap in ING’s 385-400 EUR/HUF range for the second half of the year, it can probably stay there for a while, they note.

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