The forint firmed slightly as the other currencies in the region

The forint firmed slightly as the other currencies in the region as a result of reducing rate hike expectation in the U.S. The forint started at 267 EUR/HUF and gained in a thin trade daytimes. The forint closed modestly above 266 EUR/HUF but later after publishing Fed’s minutes the forint firmed to 264.50. The result of the weekend second round of elections is the most expected event in Hungary which should give a positive signal to the markets. But till then the market will be driven especially by the core markets and the trade remains thin.

Today the forint will stagnate without any strong and clear tendency before the elections. Moderate correction is probable as a reaction to a release of April budget forecast.

(CSOB - Investment research)