13 May 2015
EUR/CZK buy on dips towards 27.00 – Rabobank
FXStreet (Edinburgh) - Drops in the cross towards the 27.00 handle could be considered as buying opportunities, suggested Piotr Matys, Strategist at Rabobank.
Key Quotes
“Q1 was dominated by market speculation about the EUR/CZK floor”.
“While the floor has been in place since November 2013, when the central bank set it at the 27.00 level, the key question is if Governor Singer may actually raise it in the coming months?”.
“Following the March meeting, Singer explicitly said that such a probability increased based on the balance of risks to CNB’s inflation forecast”.
“It was a verbal intervention, which could be followed by concrete measures at some stage this year if anti-inflationary risks to the official forecast escalate”.
“We continue to see pullbacks toward the 27.00 level as an opportunity to buy EUR/CZK to catch a potential move towards the 28.00 level or higher”.
Key Quotes
“Q1 was dominated by market speculation about the EUR/CZK floor”.
“While the floor has been in place since November 2013, when the central bank set it at the 27.00 level, the key question is if Governor Singer may actually raise it in the coming months?”.
“Following the March meeting, Singer explicitly said that such a probability increased based on the balance of risks to CNB’s inflation forecast”.
“It was a verbal intervention, which could be followed by concrete measures at some stage this year if anti-inflationary risks to the official forecast escalate”.
“We continue to see pullbacks toward the 27.00 level as an opportunity to buy EUR/CZK to catch a potential move towards the 28.00 level or higher”.