In spite of closed markets in Hungary the
forint managed to firm to its 6-month height –
EUR/HUF 259.85. The strengthening was
not curbed, even not by a Fitch credit report,
in which the rating agency on the one hand
keeps its forecast that Hungary will meet its
fiscal deficit target, on the other hand it
warned that downside risks to this scenario
have increased over the past six month.
Fitch warned in its report that Hungary is
vulnerable to investors’ sentiment due to
high external debt stock.
Today, the domestic economic calendar is
again blank thus investors will focus at ECB
meeting. The risk for the HUF seems to be a
correction on the back of recent juicy gains.
Trading resumes today after a one-day
holiday.
(CSOB - Investment research)