. Once again, the price action was result of external events, since the domestic eco calendar was completely empty. Intra-day: the unit started the session on a strong footing thanks to a turnaround in sentiment in the Polish FX market after Sejm's approval of the Polish public budget. Thus, the EUR/HUF easily broke the 249.65 support in early trading and headed quickly south to the 248 zone. The forint hit its intra-day high (EUR/HUF 248.25) in the afternoon, but it retreated slightly just before the closing as EUR/HUF bounced back to the 249 area. The late negative correction was probably not just obvious profit-taking, but it also reflected the deterioration of bond prices in core bond markets, especially in the euro-zone. Since the monthly employment report is not a market mover in Hungary, the domestic eco calendar is virtually empty today. So, the forint will look for inspiration to other markets. In this respect, should the euro-zone bond market keep its bearish tone, the forint would not be able to hold its previous gains and a return to the EUR/HUF 250.0 level would be likely.
(CSOB - Investment research)