The Hungarian forint yesterday firmed without any major impetus and reached 3-week high at 274.0 EUR/HUF. But the currency gave up some of its gains in the afternoon and ended the session above 275 level against the euro. Today the market will focus on August CPI data. Since the data matched exactly market consensus (3.5% y/y), the forint should not react significantly. We believe that expectations of monetary tightening should help to keep forint around present levels.
(CSOB - Investment research)