As recently as in January, the Czech koruna surprised markets by inexplicable strength. Then it swung in the opposite direction with force after the Russia-Ukraine conflict. Looking ahead, economists at Commerzbank expect the EUR/CZK pair to move sideways around the 25 level.

CZK to stay volatile this year

“Although things may appear to calm down, we remain cautious about volatility in CEE currencies in the months ahead, not only because of geopolitical risks but also because the Fed and ECB will progressively tighten their stance.”

“We see EUR/CZK sideways at around the 25.00 mark over the coming year.”