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Hungarian forint expected to strengthen – Danske Bank

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 28, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - Jakob Christensen, Head of EM Research at Danske Bank, HUF will remain vulnerable in the short term, and is expected to pick up pace in the longer run.

    Key Quotes

    “In the short term, we expect the HUF to remain under pressure from the volatility in global markets. Hence, we raise our 1M forecast to 312. We expect Hungary’s fairly strong external position and growth in the economy to be supportive for the HUF, with the EUR/HUF strengthening modestly in the medium term to 300 in 12M”.

    “Further global financial turmoil could weigh on the forint, although it has fared relatively well so far under the turmoil compared with other emerging market currencies. Further falls in oil prices could start putting downward pressure on core inflation, increasing the risk of a central bank rate cut. However, we see upside for the EUR/HUF from an improvement in global risk sentiment”.
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