The Hungarian forint started the week in negative territory as market sentiment has remained poor since S&P’s downward revision of the country’s rating made last Thursday.
Intra-day: the EUR/HUF pair opened just above the 251.0 level. The forint was gradually loosing ground in slow trade through out the whole session. So, EUR/HUF closed at the 252.15, not very far from the two-weeks lows standing at 252.35.
Today, it will be foreign markets which will define direction for EUR/HUF. The forint will be especially watching the MPC meeting in Poland and key data in the US (Chicago PMI). Moreover, the FOMC will deliver another 25 bps rate hike in the evening. Hence we expect the forint will move sideways till the afternoon, while the US data and the zloty reaction to the MPC meeting will decide whether the EUR/HUF 251-252.35 range will survive today.
(CSOB - Investment research)