EUR/HUF poised for further rangebound – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, sees further consolidation in the cross is likely in the near term.

Key Quotes

“The HUF has strengthened a bit more than we expected over the past month, as European political risk has subsided and the Hungarian and global economic developments have been fairly strong”.

“Looking ahead, we think that economic momentum in the Hungarian economy will continue to improve, mitigating the still dovish signals from NBH. Longer term, a positive external balance and undervalued exchange rate are further supporting factors for the HUF”.

“We more or less roll our forecast, projecting the EUR/HUF at 308 in 1M, 306 in 3M, 304 in 6M and 300 in 12M”.