The Hungarian forint continued on Friday in positive trend and firmed from Thursday’s closing value at 262.04 EUR/HUF. Throughout the whole Friday’s session the EUR/HUF pair held a tight range around 261, starting at 261.2 and ending at 261.3. Today, since US markets are closed, the forint will be mainly influenced by lurking details of government program for fiscal correction. The Prime Minister Gyurcsany said on Saturday that detailed program will be published on June 10, but at the same time betrayed that the correction will be 350-400 billion forint, 50 billion greater than previously declared. Gyurcsany also claimed that state spending will be cut already this year and that the program will say that deficit must be cut to below 3% of GDP by 2008. This can be positive impetus for the forint, albeit we do not believe EUR/HUF pair can successfully break today through support level at 260. EUR/CZK sets new all-time high on Friday.
(CSOB - Investment research)