Czech crown in the era of coronavirus
Like all other currency pairs with the US dollar, so the Czech crown is experiencing hot moments and sharply weakened last week as it reached 26.10 crowns for the US dollar, where it last traded in January 2016
. Against the euro, the crown got above 27 CZK.
In response to the current situation, the CNB Governor announced the readiness of the central bank for further rate cuts, which may already take place on Thursday, when another meeting is scheduled. After the last rate cut to 1.75% on March 16, 2020, the crown weakened strongly, but it still offers one of the highest interest rates in the region.
It is difficult to predict how much the central bank will reduce the interest rate again and how the czech crown will respond. In any case, the central banks of all countries have to deal with a similar situation, so it is possible that the market will take this into account and there will be no further sharp fall of the czech crown. According to our technical analysis, it seems that the crown has reached interesting levels, which might be a pitty to miss. So let's take a closer look at the USDCZK and the EURCZK.
The USDCZK as at March 22, 2020
First, let's see how the USDCZK currency pair looks on the weekly chart, see Figure 1.