The improvements seen by the Czech economy

The improvements seen by the Czech economy is helping bearish investors keep the USD/CZK pair grounded. Prices aren’t expected to rise anytime soon and are on track to crash towards their support level by the first few days of September. The move should push the 50-day moving average much lower against the 200-day moving average, suggesting a strong market for bears. Earlier this month, the Czech National Bank announced that it would leave its rates unmoved at 0.25% as expected. The move momentarily slowed down the Czech koruna but the significantly better than projected CPI results from the Czech Republic helped it to eventually regain its footing. On the other hand, the lackluster results produced by the US monthly retail sales report for July have caused the greenback to further lose its poise. The US retail sales dramatically went down from 8.4% to 1.2%, coming in much lower than prior expectations of about 1.9%.