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Sell-Side Comments on Recent HUF Rally

HUNGARY
  • On the recent HUF rally, Commerzbank write that strength across both HUF and PLN is more a reflection of a better mood in world markets rather than positive domestic developments.
  • They write that EUR/HUF at or below 400 is not necessarily a reflection of strong HUF with PLN/HUF broadly flat.
  • On a similar theme, Natwest write that Hungary's government has made a determined effort to play ball with the EU. A persistent fiscal deficit, high energy import costs and dwindling FX Reserves mean it has all the incentives to do everything possible to secure the funding.
  • Any EU acknowledgement of the progress made would support the currency going forward.

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