CZK: Sideways Trading In 2012

We expect the Czech koruna to remain under pressure in the coming months on the back of high uncertainty surrounding the eurozone sovereign debt crisis, which has translated to sustained bouts of risk off sentiment towards emerging markets assets. With a solution to the eurozone crisis a distant hope at this juncture and the growth outlook for the bloc − to which the Czech Republic is highly exposed on a number of fronts − growing weaker by the day we hold a short-term target of CZK25.85/EUR.

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