The Hungarian forint retreated further as disappointment about fiscal package persisted. The forint opened weaker than on Monday afternoon and the negative trend continued almost during the whole session and hit the 2.5-years low versus euro - 271,41EUR/HUF. In the late afternoon the forint recouped some of its looses and returned back below the 270 EUR/HUF level.
Today the domestic eco calendar is blank thus the forint will tend to track development on emerging markets. From this point of view the release of the US CPI will be decisive. Although we assume the fragile mood on emerging markets to persist, we do not expect further significant weakening of the forint, rather correction towards stronger values.
ČSOB Investment Research