EUR/HUF seen at 310 in 1-month – Danske Bank

The Hungarian Forint is expected to lose momentum and help EUR/HUF to reach the 310.00 handle in a month’s view, according to Senior Strategist at Danske Bank Vladimir Miklashevsky.

Key Quotes

“EUR/HUF has fallen significantly following the Brexit vote and given the general emerging markets rally, while the HUF has returned to the global EM path at the moment”.

“We think EUR/HUF will trade around current levels for the next 1-3M but then strengthen further as the NBH moves to tighten monetary policy in Q2 17, given our expectation of a pickup in inflation and economic activity”.

“Hence, our EUR/HUF forecasts are 310 in 1M and 3M, 307 in 6M and 306 on a 12M basis”.