Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CZECHIA
- CZKJPY has been retracing higher in the past few days after finding a local low at 5.29 on Friday.
- Support for the CZK has been strong in the past two months as CNB has reviewed its terminal rate to the upside to continue its combat against inflation.
- Following Governor Rusnok and other policymakers' comments, it is likely that the CNB will hike its policy rate up to 5% in H1 2022 (3.75% current).
- On the other hand, the BoJ remains very accommodative and has been ruling out policy tightening in its latest meetings.
- Therefore, support for CZKJPY could continue in the short to medium term as traders keep chasing the interest rates differential.
- ST resistance to watch stands at 5.4073, which was the high reached last week.
- A break above that level would open the door for a move up to 5.4550, which was the high reached in early February 2018 when liquidity reached its peak in the EM market (pre Covid).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok