Despite of nervousness before the speech of Prime Minister Gyurcsány about new convergence program the Hungarian forint slightly firmed. In the afternoon Prime Minister Ferenc Gyurcsány presented some details from convergence program at press conference (for more details see News section) but since the most of the information has already been published in the local press at the end of the last week the market reaction was rather muted. At first the forint eased slightly but than firmed and ended at 276.40 EUR/HUF.
Today we do not expect any Since a tendimportant domestic events. We believe that forint will digest yesterday’s publication of convergence program, which might be rather negative. Although if US existing home sales prove to be lower, the implied improved sentiment in emerging markets might help. EUR/HUF dipps on ZEW data.and presentation of revised convergence programme. The Czech currency firmed with step with the Hungarian forint yesterday as it ignored ongoing disputes between main political parties during their negotiations over a forming and set up of a new government. Hence, thanks to the forint the EUR/CZK dipped to the 28.1 area and reached intra-day at 28.13. er of a 5Y government bond could provide only little inspiration for the FX market, the koruna will focus on developments in Hungary and core bond markets. Nevertheless we expect sideways trading with low volatility.
(CSOB - Investment research)