HUF poised for further appreciation – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, believes the Hungarian Forint could get upside traction in the months to come.

Key Quotes

“As the central bank eased monetary policy at its September meeting, as signalled up to the meeting, EUR/HUF has stayed at elevated levels”.

“With headline inflation falling back a bit in September, we do not see the central bank changing its dovish stance over the coming horizon, and thus expect EUR/HUF to stay around current levels”.

“Given the continued above-potential growth, we think that tightening of the monetary policy will eventually be factored in, lending support to the HUF going forward. We see EUR/HUF at 308 in 1M, declining to 306 in 3M, 302 in 6M and 300 in 12M”.