EUR/HUF expected at 305.00 in 6-month – Danske Bank

Assistant Analyst at Danske Bank Nicolai Ringkobing, noted the Hungarian Forint is poised to appreciate towards the 305.00 area in the medium term horizon.

Key Quotes

“The Hungarian central bank kept rates unchanged at its December meeting and seems to be on hold for now. In December, CPI inflation decreased to 2.1% y/y, while core inflation declined slightly to 2.6% y/y”.

“With headline inflation remaining below the central bank’s 3% target, we do not see any imminent changes in its dovish stance but we believe that the strong economic growth will eventually drive up inflation, leading to a change in policy by the central bank at some point in 2018”.

“We see EUR/HUF at 309 in 1M (previously 311), declining to 308 in 3M (previously 310), 305 in 6M (previously 308) and 300 in 12M (previously 305)”.