The Hungarian forint firmed modestly yesterday, traded volumes were thin

The Hungarian forint firmed modestly in the morning but the traded volumes were thin as investors were waiting for the US CPI data. After higher-than-expected inflation was published the forint, together with the zloty, eased behind 270 EUR/HUF level and ended the session at the EUR/HUF 270.55 level. Today as the domestic eco calendar is again empty the development on emerging markets will be decisive. We expect the fragile sentiment to linger. On one hand the forint can be today supported by improving stock markets but on the other hand the Prime Minister Gyurcsány’s statements concerning Euro adoption, which will be almost surely postponed, and about the expectation of weaker forint could keep the Hungarian currency in a negative territory.

(CSOB - Investment research)