EUR/HUF likely to remain around 315 in near-term

In the near-term, the EUR/HUF pair is expected to stay around the level of 315, said Nordea Bank in a research report. The currency pair is then expected to move lower towards the medium-term fair value of about 290 in H2 2016. The risks towards the currency pair in the near term are slightly tilted to the upside as markets have started re-pricing of the Fed, while the prices of commodity have risen a lot in a short period of time, noted Nordea Bank.

The Hungarian central bank has lowered its key interest rate by 15bp during its meetings. After the MPC meeting yesterday, the central bank signalled that additional reduction in rates should not be expected. The current rate of 0.9% is quite lower than that of the Poland’s central bank’s interest rate of 1.5%. This is likely to restrict HUF’s strengthening against the PLN, added Nordea Bank.