Macroeconomic Forecast Czech Republic

April 2007 | Macroeconomic Forecasts

Following the Czech koruna's strong appreciation at the end of 2006, the currency has weakened noticeably since the beginning of the year, falling by 2.4%. From a technical perspective, the currency's break of a two-year trend line on January 23 was a major bearish signal, which set up further depreciation over the ensuing weeks. At the end of February, the koruna approached key support at around CZK28.50/EUR but bounced back in the wake of jitters over the carry trade. Now at CZK27.95/EUR, the currency would have to break decisively through key resistance at around CZK27.5/EUR in order to maintain an upside trajectory for the remainder

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