Hungarian forint remained under strong negative pressure

The Hungarian forint remained under strong negative pressure on Wednesday. In the morning the stop-loss barriers at 220 USD/HUF did resist and the pair EUR/HUF exceeded again all-time maximum, when traded at 279.30 EUR/HUF. Further retreating was stopped by intervention of Slovakian central bank, which helped the whole Central European region, and the forint retreated back to 278 level. Today again there will be lack of domestic impetuses in Hungary and the fragile mood will most probably persist. We believe that the maximum level, which the pair EUR/HUF can achieves in days ahead, is the central parity 282.36EUR/HUF. Prime Minister Gyurcsány mentioned this level after the presentation of the government fiscal package. He said that as consequence of fiscal measures the forint could retreat temporarily to its central parity.

ČSOB Investment Research