EUR/HUF expected to grind lower in the next months – Danske Bank

Chief Analyst at Danske Bank Jakob Christensen, sees the demand for the Hungarian Forint picking up pace in the medium term.

Key Quotes

“As we warned, the Trump victory sent EUR/HUF higher as emerging markets sold off more widely and the Trump win sparked geopolitical concerns”.

“However, we think the recent forint weakness is not justified by the fundamentals (strong economic growth, positive external balance and eventually tighter monetary policy)”.

“Hence, we think EUR/HUF will move lower over the next 1-3M, albeit from a higher level. Hence, our EUR/HUF forecasts are 308 in 1M (previously 306) and 306 in 3M, followed by 304 in 6M and 12M”.