Investing.com -- UBS strategists took note of a rise in Czech koruna, with the price returning to its pre-"Liberation Day" levels against the euro. This appreciation was attributed to a delay in the implementation of US-driven tariffs and the potential for these tariffs to be less severe than initially expected. As a result, many asset prices, including that of the Czech koruna, experienced an uplift.
In light of the recent developments, UBS has revised its forecasts for the Czech koruna, showing a more optimistic outlook. The firm now predicts the EUR/CZK exchange rate to be at 25.1, 25.3, 25.3, and 25.3 through the first quarter of 2026.
This is a slight improvement from their previous forecasts of 25.4, 25.6, 25.8, and 25.8, respectively, indicating a tempered expectation of weakness in the koruna.
UBS acknowledges, however, that there are still risks that could influence the koruna’s trajectory. These include the possibility of a swift trade deal between the European Union and the United States, which could strengthen the koruna further.
Additionally, if the Czech National Bank maintains a hawkish stance, or if there is a near-term ceasefire in Ukraine, these factors could also provide support to the Czech currency.
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