USD/CZK will reverse back in today’s session

27 Jan 2020

The pair will reverse back in today’s session following last Friday’s weak candle, sending the pair lower toward its previous low. Czechia introduced its digital taxation system during the meeting of the EU’s finance ministers in Brussels. The move by Prague was in addition to the growing number of EU-member states introducing a digital taxation bill. The proposed taxation system targets large US technology companies like Apple, Facebook, and Google. Margrethe Vestager, who led the world’s largest tax case complain against Apple for $14 billion, is currently serving as Competition Minister for the second term under the commission of Ursula von der Leyen. On the other hand, the United States warned that it will retaliate to Czechia in the form of tariffs once the Czech Parliament passed the bill. Under the bill, the government will tax technology companies with more than $100 billion in market capitalization by 7%.