The Hungarian forint closed a touch firmer as the domestic bond market extended its rebound after Thursday’s successful 15Y government bond auction. It is worth mentioning, the EUR/HUF pair shrugged off the January US pay-roll report, while the trading was, as usual on Friday, softer ahead of the weekend.
Intra-day, EUR/HUF tracked domestic bond yields and drifted slowly south through out the session. So EUR/HUF closed at the 250.70 level on Friday, which was almost a two-weeks low.
Today, the domestic calendar is empty, so the market might wait for tomorrow’s releases, especially the January public budget figures. Hence, we expect sideways trading in a tight range in the EUR/HUF 250 zone. One may not rule out that the pair will successfully test the 250.65 support.
(CSOB - Investment research)