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Mixed Opinions On EUR/HUF Short Following NBH Meeting

HUNGARY
  • Mixed sentiment from sell-side on EUR/HUF following yesterday's run of the mill NBH meeting.
  • SocGen see strong technical basis for continued hold on short positions, but warn Abundant HUF liquidity & approaching year-end are negative factors.
  • EUR/HUF to move higher in the near term
  • Drop toward 370 & would expect NBH to hike the 1w depo to roughly 1%.
  • Curve flattening in the near term
  • Long end likely to remain anchored at current levels or even decline in the very near term - CPI growth is set to decelerate in Dec & Jan on base effects.
  • Curve should therefore flatten in the near term.
  • JPM : Risk premium compressing post EU budget veto being pulled.
  • Slight correction higher as another opportunity to reallocate to the short.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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