EUR/HUF could test 305 in 12-month – Danske Bank
Nicolai Ringkobing, Assistant Analyst at Danske Bank, argued the Hungarian Forint is expected to gather traction towards the 305 area within a year’s time.
“With inflation falling back in October, we expect the central bank’s dovish stance to last for an extended period. Consequently, EUR/HUF has increased to the 312 area over the past month”.
“Given the continued above-potential growth, we think the tightening of monetary policy will eventually be factored in, lending support to the HUF, but with the recent fall in inflation, this repricing has probably been pushed some way into the future”.
“We see EUR/HUF at 311 in 1M (previously 308), declining to 310 in 3M (previously 306), 308 in 6M (previously 302) and 305 in 12M (previously 300)”.