🍪 Cookies

We use cookies to store, access and process personal data to give you the best online experience. By clicking Accept Cookies you consent to storing all cookies and ensure best website performance. You can modify cookie preferences or withdraw consent by clicking Cookie Settings. To find out more about cookies and purposes, read our Cookie Policy and Privacy Notice.

Cookies settings


Cookie Control

What are cookies?

Cookies are small text files that enable us, and our service provides to uniquely identify your browser or device. Cookies normally work by assigning a unique number to your device and are stored on your browser by the websites that you visit as well as third-party service providers for those website. By the term cookies other technologies as SDKs, pixels and local storage are to be considered.


If Enabled

We may recognize you as a customer which enables customized services, content and advertising, services effectiveness and device recognition for enhanced security
We may improve your experience based on your previous session
We can keep track of your preferences and personalize services
We can improve the performance of Website.


If Disabled

We won't be able to remember your previous sessions, that won't allow us to tailor the website according to your preferences
Some features might not be available and user experience reduced without cookies


Strictly necessary means that essential functions of the Website can not be provided without using them. Because these cookies are essential for the properly working and secure of Website features and services, you cannot opt-out of using these technologies. You can still block them within your browser, but it might cause the disfunction of basic website features.

  • Setting privacy preferences
  • Secure log in
  • Secure connection during the usage of services
  • Filling forms

Analytics and performance tracking technologies to analyze how you use the Website.

  • Most viewed pages
  • Interaction with content
  • Error analysis
  • Testing and Measuring various design effectivity

The Website may use third-party advertising and marketing technologies.

  • Promote our services on other platforms and websites
  • Measure the effectiveness of our campaigns

Trading is risky and your entire investment may be at risk

CapitalPanda | Czech National Bank left rates unchanged

Latest news

Read current news from the financial markets and expert articles from our analyst.

Czech National Bank left rates unchanged

Rates unchanged at 7 percent[1]

Interest rates were left unchanged by the CNB Bank Board. Thus, the discount rate is still at 6%, the Lombard rate is still at 8%, and the two-week repo rate (2W repo rate) is still at 7%.

The interest rates set by the CNB are reducing constraints on domestic demand. They are reducing the growth of loans made to individuals and businesses, which will also reduce the amount of money in circulation. The Bank Board concurred that prudent budgetary policies and reasonable wage demands are also necessary for long-term price stability. The Bank Board will review new information after waiting for more. At the next meeting, it will determine whether to raise or maintain interest rates – as it can be seen in the Statement of the Bank Board.

Inflation is expected to increase even more during the next three months, according to CNB's projection. Gas and electricity rates will be the major causes of the increase. Inflation is predicted to peak at roughly 20 percent in the fall and average 16.5 percent for the whole year (in our spring forecast we expected 13.1 percent). In a year and a half, the estimate predicts, inflation will drop to about 2%.

Although I rarely express opinions on central bank policies, I think this is a smart move. And that the additional impact on taxpayers due to already relatively high interest rates would harm the export-oriented economy.

Technical view

The USDCZK is on an interesting path. Since the beginning of the year, the pair went up slightly more than 11.5 percent.* But the interesting part is that on the Chart 1, we can se formation of the rising wedge pattern.  Not only its formation, but it seems to be nearing its end, and we could see its breakdown as well.[1]

grafikcnb1*

Chart 1: USDCZK value, daily timeframe (source: tradingview.com)

At the same time, the divergence between the rising price and the falling RSI indicator is visible. In this way, we have two rather strong signs that indicate a possible change in the trend of the value of this currency pair.

If the Pivot zone is not broken during the retest, it can be opened as a short position. The first target could be around Support zone 1 and the second target around Support zone 2.

 

Overview report prepared by Jozo Perić, Analyst of CapitalPanda

 

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

 

*Past performance is no guarantee of future results.

 

 

[1] CNB: https://www.cnb.cz/en/

The content of this material constitutes marketing communication and should not be considered as any type of investment advice and/or investment research and/or a solicitation for any transactions. This material was prepared for informational/educational purposes only and does not imply an obligation to perform investment transactions nor does it guarantee or predict future performance. BCM Begin Capital Markets Cy Ltd and its relevant persons including affiliates, agents, directors, or employees do not guarantee the accuracy, validity, timeliness, or completeness of any information/data provided by third parties and assume no liability for any loss arising from any investment made based on the said information/data. Past performance is no guarantee of future results.

CapitalPanda | US inflation may not be possible tamed
04.07.2022

US inflation may not be possible tamed

Jerome Powell, the chairman of the Federal Reserve, tried to persuade the public this week that the Fed will raise interest rates quickly and high enough to suppress inflation without restricting cred...