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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
- As CNB prepares for a tightening cycle, traders have been chasing the CZK in recent weeks as a result of the expected MP divergence between CNB and the major developed central banks.
- Despite the poor performance in the first quarter due to the worsening Covid situation, which increased the divergence in growth expectations between the US and Czech Republic, the chart below shows that the sharp fall in the real interest rate differential between US and Czech in the past year has been one of the major factors behind the currency (CZK) strength.
- The 10Y real yield differential fell from a high of 2.8% in May 2020 to -1.22%, pushing the exchange rate down from 25.50 to 20.90 (CZK up over 20%).
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.
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