For Hungarian forint trading this week
might be very poor both on domestic and
regional macroeconomic news. However,
there will be a lot of external moving factors,
which could make emerging markets’ trading
volatile. Among them, Thursday’s ECB
meeting will be the top event.
Today, the market will probably try to digest
what happened in the US markets since
there was no domestic trading due to the
holiday on Monday. From this perspective,
yesterday’s rise in US bond yields is a
bearish signal for the forint. Hence, the forint
might be under modest downward pressure
at the start of trading. Nevertheless, we do
not expect the forint to leave its current
sideways trading pattern against the single
currency. So, we expect the range bound
trading to continue unless there is some
unexpected news come from domestic
politics. The EUR/HUF pair should continue
to trade within the ranges of 262.35 and
268.0.
(CSOB - Investment research)