The Hungarian forint moved sideways within the 250 zone yesterday

The EUR/HUF pair again failed to break below the 250.0 support in a sustainable way, since the intra-day low at 249.90 was touched just very briefly. Interestingly, the forint decoupled from the domestic bond market yesterday, which extended its gains. Moreover, ECB’s Trichet sounded less hawkish-than-expected, but his press conference failed to inspire the market too. Today, the domestic calendar includes just the NBH Minutes, but they will hardly bring anything new (for more see the fixed-income section). So the forint should look to other markets for inspiration. Given the experience from recent trading days, we believe EUR/HUF keeps to hover slightly above the 250 level again.

(CSOB - Investment research)