Despite an initial weakening the Hungarian forint firmed in step with other CE currencies. There were no particular events which would declare the price action. The weakening US dollar and easing rate hike hopes in the US respectively could be the global reason, which supported Central European currencies. Locally, the only news, though positive, was the release of the April PMI. Seasonally adjusted Purchasing Manager Index rose by 2.2 points. Interestingly the index was driven by sub-indices of new orders (up by 3.5) and export (up by 3.1). Intra-day, the EUR/HUF pair was heading south most of the session, while at the end of the domestic trading the key support standing at the 262.35 level was tested.
Today, the domestic calendar is empty once again, hence the forint will rather look to other markets for inspiration. Technically, the EUR/HUF 262.35 will be tested again. If the pair breaks this barrier, the next support will stand at the 261.45 level.
(CSOB - Investment research)