EUR/CZK to target 25.50 as Czech Republic faces policy challenges – Credit Suisse

Analysts at Credit Suisse stay bearish on the Czech koruna and stick to a target of 25.50 in EUR/CZK. 

Stay bearish on CZK

“We stay bearish on the Czech koruna given our view that investor nervousness around the monetary policy outlook is going to intensify once a new governor – Ales Michl – steps in in early July.”

“We think that EUR/CZK downside is currently limited to 24.40 even in the event of a sizable policy rate hike next week (e.g. 100bps-125bps).”

“We stick to a target of 25.50 for EUR/CZK.