Bears are looking to avoid another upward reversal from EUR/CZK

28 may 2020

Bears are looking to avoid another upward reversal from the pair and are determined to bring the pair lower towards its support. Unlike other currencies in the region, the Czech koruna has been significantly lagging behind in terms of performance against the euro. The main reason for its prior weakness is the negativity around Czech bonds. Earlier this month, the Czech Finance Ministry reportedly sold about 9.7 billion Czech korunas of three bonds, significantly lower than the previous sales. The Czech Republic has seen a huge spike in borrowing with the demand in the country’s debt market high following the previous rate cuts from the central bank. The main factor that will help the Czech koruna now is the news about the country reopening its economy and its borders. The rate of new cases and even deaths for the coronavirus in the Czech Republic has significantly declined, and now the country wants to return to normal.