Yesterday, the Hungarian forint without significant impetuses slightly firmed

Yesterday, the Hungarian forint without significant impetuses slightly firmed. The positive mood on the Hungarian market stemmed mainly from comments of Eurogroup chairman Jean-Claude Junker, who appreciate Hungary’s efforts to cut the budget deficit. He also said that that the new Convergence Programme included credible measures to consolidate public finances. We believe that today the forint will move sideways before ECB meeting. Markets do not expect a rate hike on today’s meeting but comments accompanying rate decision will be in focus. However we expect only limited impact on the forint, as it is widely expected that ECB will signalize next hike for the nearest meeting.

(CSOB - Investment research)