Macroeconomic Forecast Czech RepublicJuly 2010 | Macroeconomic Forecasts
The Czech koruna strengthened against the euro through July, moving towards the upper bounds of its multi-month trading range as European sovereign debt fears subsided. Despite this good run, we take a neutral stance towards to koruna going forward. Indeed, while we believe that a dependable Czech economy and fiscally conservative government should ensure the unit it well supported, we see upside as capped by the Czech National Bank's loose monetary policy and its likely continuation. We forecast that the koruna will come in at CZK24.50/EUR at end-2010.
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