FxNews—The upward momentum of the USDCZK currency pair (the U.S. Dollar and the Czech Koruna) slowed after reaching resistance at 22.72.
USDCZK Crucial Resistance Test at 22.72
This significant level coincides with both the high of March 2023 and the low of November, making it a challenging barrier to overcome. If the USDCZK price stays below the 22.72 mark, we might see a consolidation phase or a trend reversal. Should this happen, the USDCZK price could drop to the 38.2% support level and possibly to the 50% level, as indicated by the Fibonacci retracement tool.
On the other hand, if the bulls manage to push and maintain the USDCZK price above 22.72, we could witness the continuation of the bullish trend. In such a case, the next target would be the 23.0 area.
Czech Republic’s Inflation Slows to 7.3
Bloomberg—In November 2023, the Czech Republic’s annual inflation rate dropped to 7.3%, a decrease from the 8.5% recorded in the previous month. This figure nearly matched the market’s prediction of 7.2%. The decline in inflation was primarily driven by reduced rates in several areas: housing and utilities fell from 19.6% to 17.0%, food and non-alcoholic beverages decreased from 3.7% to 1.5%, and alcoholic beverages and tobacco saw a slight dip from 6.1% to 5.9%.
Furthermore, transportation costs continued their downward trend, showing a 2.3% decrease due to lower prices for cars and fuels, including lubricants for personal transport equipment. On a month-to-month basis, consumer prices rose by 0.1%, consistent with the growth rate in the previous month.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
