CEE: Poland and Hungary closed for public holiday – ING

The end of the week in the region should be quiet. The Polish and Hungarian markets are closed today and activity should be muted, ING’s FX analyst Frantisek Taborsky notes.

EUR/HUF is likely to continue to test new highs

“On the calendar we have PMIs across the region with the exception of Poland. These could show some improvement after the data in Germany. In the Czech Republic, the budget result for October will be released which should indicate the first costs associated with the floods.”

“In the markets, the Czech koruna showed some outperformance yesterday within the region while the Hungarian forint remains under pressure. EUR/HUF almost touched 410 yesterday but returned to 408. There still seems to be no room for stabilisation here in the near term and we expect Central and Eastern Europe (CEE) to remain under pressure at least until the US election.”

“Further direction will depend on the outcome of the election. Therefore, EUR/HUF is likely to continue to test new highs. EUR/CZK bounced down from 25.40 and the koruna reaffirms its resistance within the region, which remains our preference for the days ahead.”