The Hungarian forint resumed trading with a quite uneventful session as U.S. markets were closed and the domestic eco calendar was empty. The EUR/HUF pair moved mostly sideways while it twice tested the 251.95 resistance, but failed to break it in a sustainable way. Recall that the first attempt came right after the opening as the market digested an article of György Kopits, member of Hungary's Monetary Council, who strongly criticised both main political parties for a lack of fiscal discipline. Finally, it is also worth noting that the currency has been ignoring the strong rally in the domestic equity market for the second day in a row (the BUX index jumped up by 4.5 % since Friday’s opening). Given the lack of domestic events, the market should watch other markets to find some incentives. Should the core bond markets continue to recover, the forint would have a chance to strengthen and EUR/HUF might eventually dip back to the 250.0 level.
(CSOB - Investment research)