EUR/HUF likely to move upwards to 320 by 2016-end

The Hungarian forint has remained stable as the central bank has firmly ruled out additional monetary easing for now. The general emerging market risk rally has also assisted in moving several exchange rates to totally different ranges in the past quarter, with EUR/HUF being one of them.

However, the currency pair, EUR/HUF, has traded at 318.00 in June and this might become relevant as the U.S. Fed sets up its next rate hike, said Commerzbank in a research note. The persistent mild inflation and the marked growth downturn are likely to renew the market’s expectations of a rate cut by the end of this year.

“This is likely to pressure EUR/HUF up towards the 320.00 region”, added Commerzbank.