The given currency pair shows the value of the greenback, expressed in Czech korunas. The common currency hugely influences it because the Czech Republic has EU membership. You need to watch the significant eurozone events to trade it successfully carefully.
Beautiful banknotes – that’s the first thing we can say about this currency. Ondzhih Kulganek created the design of these banknotes.
The history of this asset traces back to the epoch of Austria-Hungary where a new monetary unit “koruna” was started. One koruna included 100 Hellers. In 1919, Czechoslovakia gained independence after the end of World War I. The new monetary unit of the state retained the official name of the imperial money.
The Czechoslovak currency was in circulation until 1993. As soon as the country broke up into Slovakia and the Czech Republic, each state came up with its monetary unit. Initially, the new symbols were glued to the old banknotes.
Currently, it’s one of the most stable assets in Eastern Europe because the Czech Republic has the most powerful economy in Eastern Europe. One of its crucial trade partners is Germany. Indeed, American and Czech economics can’t be compared in terms of strength. CZK doesn’t have a reserve status, unlike the greenback.
The greenback is the key Forex currency available almost in any currency pair. The Fed issues USD and takes all the necessary measures to underpin the US economy.
Fed meetings greatly influence the USD exchange rate. As an investor, you should monitor them since they generate enormous volatility in the Forex market.
If you are eager to trade this pair successfully, you should use standard trading methods. For instance, you should utilize technical as well as fundamental analysis. Furthermore, you require paying attention to the eurozone news. Any significant changes in the economy of the European Union significantly impact the value of the Czech currency. Don’t forget to monitor American news.
The most active period of trading this currency is the European trading session. The publication of US macroeconomic indicators can also boost this asset’s volatility. The pair is calm enough during the Asian trading session.
Make use of stop loss and take profit pending orders to minimize your losses and automatically derive gains. What’s more, the use of pending orders is a great way to trade in a disciplined approach, strictly following your strategy. Wisely use leverage. Avoid risking over 5% of your trading deposit.