USD/CZK

On the global forex market, the USD to CZK pair is one of the less popular currency pairs. However, it still offers significant opportunities that interested traders could capitalise on. As a minor pair, it combines the widespread popularity and strength of the US Dollar (USD) with the smaller Czech Koruna (CZK) – the 27th most-traded currency in the world, based on April 2019 daily averages.

Due to the Czech Republic’s geographical position in central Europe, it’s more common for CZK to be traded in the EUR to CZK pair. But forex investors – particularly more experienced ones – can make significant gains with the USD to CZK pair. The lower trading volume can make trade patterns easier to spot, while there are also opportunities to develop new strategies.

It can also be a feature of less popular pairings such as the USD to CZK pair that it only attracts investors of a certain level of experience. As such, the profit-making potential can be far higher.

The USD to CZK pair might only be a short-term opportunity for traders, however. As a member state of the European Union (EU), the Czech Republic will adopt the Euro at some point – but no target date has yet been set. While this will mean CZK will eventually disappear from the global forex market, there is still time for traders to explore the potential of this exotic pairing.

The position of the Czech government in terms of its adoption of the Euro is likely to be a main driver of USD to CZK news. The value of the CZK (and other currencies) will be impacted when it becomes known when the Czech Republic sets a target date. This will cause movement in the USD to CZK rate that traders should be cautious of.

In recent times, there has also been talk of the Czech Republic leaving the EU altogether. While still highly unlikely, any developments that disrupt political and trading links with its neighbours will influence the USD to CZK rate. Exports of goods and services make up 78% of Czech GDP – with Germany accounting for nearly a third of all exports from the country.

Economic issues affecting the Eurozone (or individual countries within it) can’t be overlooked by traders either. The USD to CZK pair is highly exposed to such concerns, again due to the Czech Republic’s central European links and location. While not a member of the Eurozone itself, there are factors that have a knock-on effect – even though Czech economic growth has been strong.

The value of the USD benefits from the ongoing strength of the US economy but is not without its challenges. Investors are advised to monitor announcements from the Federal Reserve. Any movement in interest rates or other fiscal policies impact the Dollar’s value and – subsequently – cause fluctuation in the USD to CZK rate.

Traders can get access to the latest market conditions in real time with our USD to CZK chart. It displays the most current mid-market USD to CZK rates as calculated by our unique pricing engine. With this chart, you can explore historic trends and set your next position with all the information you need. Do not use this chart as a prediction of future performance, however.