On Monday, Central European exploited a (probably only) temporary turn in sentiment and posted some gains. The delayed vote on Hungary’s controversial central bank law bolstered the forint which outperformed its peers and edged back towards EUR/HUF 300 level. Recall that the government decided to call off the vote in order to discuss the most disputed issues with international authorities more thoroughly. The Fidesz party official said that the parliament would amend the law by the middle of July. Let us remind that without the deal, Hungary probably will not be able to lower government bond yields which now stand at nearly 9 percent (10Y government bond), i.e. at the level which is in long term hardly sustainable (with reasonable level of inflation and exchange rate). As for today’s trading, it should be thin again due to absence of London players. We believe that the global mood rather than regional factors will continue to be the main driver of trading in Central Europe. We wouldn’t draw any firm conclusion from yesterday’s price action and therefore maintain the view that regional currencies might post further losses in sessions ahead.