8 May 2015
Prospects remain positive for HUF – BAML
FXStreet (Edinburgh) - Analysts at BAML have remarked the positive outlook for the Hungarian forint.
Key Quotes
“The economy is going through a favorable phase with domestic demand still
improving and the global backdrop favorable with low energy and European
Central Bank QE”.
“Room for easing remains with inflation barely at the 2% lower bound by end- 2016. The year-end 2015 policy rate will likely be 1.35%, baring deterioration in global risk sentiment that could lead to sharp HUF depreciation”.
“HUF has recovered from its December weakness, but remains among our favored currencies in the region with domestic and regional trends supportive”.
“We keep our short RON/HUF position, though near-term weakness on the EU funds discussion is possible. PLN/HUF also appears much too high long-term. Inflation remains low, but is bottoming out, reducing support for the long end even as the Monetary Policy Committee catches up to rate cuts”.
Key Quotes
“The economy is going through a favorable phase with domestic demand still
improving and the global backdrop favorable with low energy and European
Central Bank QE”.
“Room for easing remains with inflation barely at the 2% lower bound by end- 2016. The year-end 2015 policy rate will likely be 1.35%, baring deterioration in global risk sentiment that could lead to sharp HUF depreciation”.
“HUF has recovered from its December weakness, but remains among our favored currencies in the region with domestic and regional trends supportive”.
“We keep our short RON/HUF position, though near-term weakness on the EU funds discussion is possible. PLN/HUF also appears much too high long-term. Inflation remains low, but is bottoming out, reducing support for the long end even as the Monetary Policy Committee catches up to rate cuts”.