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HSBC Close Long EUR/CZK Trade Idea Following CNB

CZK
  • HSBC close their buy EUR/CZK trade idea at 25.20. The trade had a positive performance of 0.1%. HSBC opened the buy EUR/CZK trade at 25.17, with a target at 25.60 and a stop at 25.00. They had believed that the risks around the CNB rate decision this month were skewed more towards the dovish end, which would exert upwards pressure on EUR/CZK.
  • However, the CNB not only cut the policy rate by a more moderate 50bps, but the vote split (5:2 with 2 dissenters for a 75bp cut) was also rather neutral, in their view. The tone of the press conference was also similar to that of previous rhetoric. Thus, they are closing the trade for a positive performance of 0.1%.

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