News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Czech Koruna Soars As Central Bank Ends Currency Peg

Czech Koruna Soars As Central Bank Ends Currency Peg

2017-04-06 11:25:00
Oliver Morrison, Analyst
Share:

Talking Points:

- Czech National Bank announces end of currency peg, in place since November 2013.

- The bank was not committed to maintain the peg beyond April 1 – so move was expected at some stage.

- EURCZK plummets – bank Governor will speak at 1215 GMT.

The Czech Koruna is at its highest level against the Euro since November 2013 and could be poised to climb even further after the Czech central bank ended its currency cap. Investors have bet an estimated $65 billion that the crown will strengthen after the end of the currency cap, which had been in place since November 2013.

The central bank had been keeping the crown on the weak side of 27 per euro. But in an extraordinary meeting held Thursday morning, the CNB announced it was removing the cap in order to help revive inflation, reiterating it would be ready to step into the market if it needed to smooth currency swings.

“The CNB stands ready to use its instruments to mitigate potential excessive exchange rate fluctuations if needed,” the bank said in the statement. The bank said Governor Jiri Rusnok will hold a news conference to discuss the decision at 2.15 pm (1215 GMT) in Prague.

The decision sent the crown into wild swings, but it has eventually settled at its highest since November 2013.

EURCZK 15-Minute Chart (Intraday April 6, 2017)

Czech Koruna Soars As Central Bank Ends Currency Peg

Chart by IG

See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at oliver.morrison@ig.com

Don't trade FX but want to learn more? Read the DailyFX Trading Guides

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES