Despite continued bearish sentiment in the domestic bond market the Hungarian forint closed only little changed the last week. The EUR/HUF pair was locked in the 251 zone on Friday after Thursday's S&P downward revision of outlook of the Hungarian sovereign rating. Overall price action was unimpressive, so there was little to comment. could quite hot for the forint like for other vulnerable emerging market currencies. The eco calendar in core markets is very rich including eye-catching FOMC and ECB meetings and several key releases of business sentiment in the US. At the top of that there will be a 3Y and 15Y bond auction, which will be a real test of domestic market sentiment. Nevertheless, today's trading could be calmer, since the hot agenda in core markets begins tomorrow. Hence, for EUR/HUF we expect range-bound trading within the 250-252 area today.
(CSOB - Investment research)