The Hungarian forint yesterday ignored domestic impetuses and tracked its regional
counterparts in a moderate weakening. The forint was unaffected by the release of
January’s wage growth, which in line with expectations showed more favourable results
compared to December’s sharp rise. Also the reduction of first quarter budget
deficit forecast had no market impact. It is also worth mentioning that Finance Ministry
claimed that abolition of the forint’s trading band is not on the agenda.
Today the domestic economic calendar is empty and thus the regional sentiment will
be again decisive. However, yesterday’s statement of the Finance Ministry to some
extent might have curbed speculations about an abolition of forint’s trading band and
might trigger a (moderate) further weakening of the forint.