The Hungarian FX market was calm on Monday as US markets were closed. The forint opened firmer than on Friday and hovered in a tight range between 276.50-277.65 against the euro. Not even Moody’s annual report on Hungary had any impact on the Hungarian currency. Moody’s said that government is unlikely to implement any fiscal reforms except increases of taxes before local elections in October and added that rating outlook is negative due to uncertainty concerning government’s commitment to fiscal tightening. Since Moody’s is expected to reassess its rating for Hungary, which is currently A1, after local election in October, the regular report came as market neutral. Today, once again the economic calendar is empty thus the forint will look for inspiration to other markets and might benefit from improved regional sentiment. The Czech koruna firms slightly.
(CSOB - Investment research)