The Hungarian forint corrected part of last
week’s gains on Monday morning and
retreated above EUR/HUF 263 level amid
the absence of market moving news,
nevertheless in the afternoon it managed
without significant impulses to firm and
ended the session at EUR/HUF 262.45.
Today the domestic economic calendar is
blank. On the political front it is worth
mentioning that the government will present
its draft budget for 2007 to the parliament
tomorrow. It is likely to pass given the
distribution of power in parliament thus we
doubt that it will trigger any market reaction.
The crucial data from core markets are
expected to come later this week, thus we
believe that the forint will ahead of
tomorrow’s holliday move sideways.
(CSOB - Investment research)