May 10, 2022 - 05:22 PM 254 views
end of mid-April at around 370, the EUR/HUF pair has faced significant
headwinds. ING Economists predict that the pair will hover around the 378 range
over the next three months.
HUF is under heavy pressure as the
external balance falls.
main aspect behind the HUF's weakness is that it holds the endless depreciation
in the external balance because of the country’s rise in energy bills. This
keeps a heavy pressure on the forint currency, creating a structural bet
against HUF, which is simple for investors.
ongoing hawkishness, the National Bank of Hungary probably provides a support
system, but currently we watch 378 points, which holds the gravity line for the
next three months.
de-escalation creates tides in the foreign markets, we hope to see EUR/HUF
trade in the 355-360 range in the long run.