EUR/HUF: The gravity line will remain at 378 for the next three months — ING

Since the 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.

May 10, 2022 - 05:22 PM 254 views

EUR/HUF: The gravity line will remain at 378 for the next three months — ING

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© EUR/HUF: The gravity line will remain at 378 for the next three months — ING

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Since the 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.

The 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.

Amid 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.

As the de-escalation creates tides in the foreign markets, we hope to see EUR/HUF trade in the 355-360 range in the long run.

 

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