17 Feb 2015
Carry-trade could benefit HUF – Danske Bank
FXStreet (Edinburgh) - Chief Analyst at Danske Bank Lars Christensen noted the probable appreciation of the Hungarian currency backed by the country’s good external position.
Key Quotes
“Growth has been picking up in Hungary and, after years of stagnation, it is becoming one of the fastest growth economies in central and Eastern Europe”.
“The HUF has fairly attractive long-term fundamentals and the relatively large current account surplus is particularly helpful”.
“We continue to believe that Hungary’s fairly strong external position is likely to be supportive for the HUF in the medium term”.
“Furthermore, fairly strong growth and an expected pick-up in inflation are likely to keep the carry on the forint relatively attractive, and we therefore continue to expect near-term appreciation of the forint”.
“We lower our 1M, 3M, 6M and 12M EUR/HUF forecasts to 305, 305, 300 and 300, respectively from 320, 325, 325 and 320, previously”.
Key Quotes
“Growth has been picking up in Hungary and, after years of stagnation, it is becoming one of the fastest growth economies in central and Eastern Europe”.
“The HUF has fairly attractive long-term fundamentals and the relatively large current account surplus is particularly helpful”.
“We continue to believe that Hungary’s fairly strong external position is likely to be supportive for the HUF in the medium term”.
“Furthermore, fairly strong growth and an expected pick-up in inflation are likely to keep the carry on the forint relatively attractive, and we therefore continue to expect near-term appreciation of the forint”.
“We lower our 1M, 3M, 6M and 12M EUR/HUF forecasts to 305, 305, 300 and 300, respectively from 320, 325, 325 and 320, previously”.