The Hungarian forint was volatile during Friday’s session. In the morning, Less hawkish than expected comments from FOMC together with narrowing current account deficit helped the forint to firm. But soon the fragile mood outweighed and the forint tracked other Central European currencies and retreated back up to 284.4 EUR/HUF, ending at 282.75 EUR/HUF. Today, there is a non-rate-setting meeting of NBH, though markets speculate that central bank can though raise rates. In our view if the NBH decides not to move rates today (which is not our scenario) the forint will remain under negative pressure. Slovak koruna stiil under pressure on domestic politics. The Slovak markets are still nervous.
(CSOB - Investment research)