I've once written a blog on this pair, about the peg Everything You Need to Know About Peg on EUR/CZK and How to Trade it Afterwards.
We are back above 27 czech crowns per euro and so I think this pair deserves an attention of forexmospherians again.
Few words about current development. The reason why Czech National Bank (CNB) set a peg on 27.00 like 5 years ago were the deflationary tendencies which are thought to be harmful for the economy. The level of a "healthy" inflation was reached through this monetary channel and the peg was left. Why it is on my spotlight - here are several scenarios which can influence the exhcange rate of this currency pair in the near future:
- The level of inflation will…