The Hungarian forint eased at the end of last week but its losses were rather modest because the EUR/HUF pair remained still locked within the 251 zone. There was no obvious market mover, hence it is hard to declare Friday’s price action. Recall that EUR/HUF closed just below the 251.95 resistance.
Since a congress of the ruling Socialist party did not bring any surprise on Saturday (the party just repeated its unrealistic pledge to meet euro entry criteria by 2008), trading should be calm today, especially when we take into account that US markets are closed today. So EUR/HUF should keep to move sideways and eventually to test the 251.95 resistance.
(CSOB - Investment research)