23 Apr 2021 18:14
The GBP/CZK pair is not included in the list of most popular currency pairs on Forex; it is a cross rate against the U.S. dollar. The American dollar is not included in the symbol of the pair, however, its influence is significant. This can be seen, if you combine two charts GBP/USD and USD/CZK in one window, then you will get the approximate GBP/CZK curve.
As the U.S. dollar exerts significant influence on both currencies, it is necessary to consider the major U.S. economic indicators when predicting the future trend of this instrument. Among the most important indicators there are such as the interest rate, GDP, unemployment rate, new jobs, etc. In addition, you should keep in mind that these currencies can react differently to changes in the United States economy, therefore, GBP/CZK is an indicator of alterations concerning these currencies.
The Czech Republic is one of the most advanced industrialized countries of Central Europe. The country is one of the most prosperous and stable among all countries of the region. The rate of personal income in the Czech Republic is high, which is stemming from a high level of the economic development.
The main sectors of the Czech Republic economy are: machinery, iron and steel production, chemical industry, electronics, beer production as well as agriculture. The most developed economic sector is the automotive industry. The Czech Republic has one of the highest rates of car production in the world, most of which is exported. In addition, the country is one of the leading exporters of beer and shoes. Among other goods exported from the country there are chemical products: tires, synthetic fibers, etc. The main trade partners of the Czech Republic are Germany, Russia, Slovakia and Austria. The country is among the European leaders of electricity production, as the electric power here is nuclear, thermal, hydro, solar and wind.
Trading cross rates, do not forget that brokers as a rule set a higher spread for crosses. Thus before you start working with crosses, find out all conditions offered by the broker regarding trading certain instrument.