- Analytics
- News and Tools
- Market News
- EUR/HUF: Potential for the forint if the MNB remains on a clearly restrictive course – Commerzbank
EUR/HUF: Potential for the forint if the MNB remains on a clearly restrictive course – Commerzbank
EUR/HUF is trading back in the area around 410. Fighting inflation or the weakening currency – what is the Hungarian central bank’s (MNB's) motivation? The extent of further forint weakness is likely to depend mainly on monetary policy, economists at Commerzbank report.
MNB can not allow any doubts as to whether it is prepared to further tighten its monetary policy
“The MNB can not allow any doubts as to whether it is prepared to further tighten its monetary policy beyond the rate hike of 100 bps priced in for today. Otherwise, the market is likely to feel confirmed in its concerns that the MNB is being driven by the weakened forint which would then come under even more intense pressure.”
“If the MNB remains on a clearly restrictive course, we see potential for the forint. In particular compared with other Central and Eastern European currencies, as both the Polish and the Czech central banks have signalled that further rate hikes are unlikely for now. If the MNB sticks to further rate hikes though the forint could soon become an attractive alternative in the region.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
