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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
HUNGARY
- HUF has been relatively weak in the past two months even though the NBH has been raising rates since June to curb the inflationary pressures.
- We saw that market was slightly disappointed this week with NBH deciding to hike the benchmark rate by 15bps to 1.80%.
- A 30bps hike could have eased the volatility on the long end of the interest rate curve and the selling pressure on HUF.
- Selling pressure could remain elevated in the near term, which will continue to weigh on the HUF (which has been trading at multi month lows against major crosses).
- This chart shows that HUF NEER (nominal effective exchange rate), which looks at the performance of HUF versus a broader range of currencies, appears significantly undervalued relative to historical norm, currently standing 15% below its LT average.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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