Due to holidays in Hungary as well as in the euro-zone, trading volumes of the Hungarian forint were low. The forint eased on Monday in step with the Czech koruna from morning values around 263.25 to 264.10 EUR/HUF. Today’s domestic eco calendar is empty but several factors might have negative impact on the forint e.g. prevailing fragile mood resulting from political instability on emerging markets and hawkish commentaries of the Chairman of FED Ben Bernanke on conference of American Bankers Association. These factors will most probably trigger the forint down till resistance at the 265.0 level. A negative impact on the forint might have also forthcoming Thursday’s auction of 5Y and 10Y bonds, which could be precede by pre-positioning and that a weakening of the bond market.
(CSOB - Investment research)