Free Trial

Selling Pressure on HUF Rises As NBH Disappoints

HUNGARY
  • The 30bps hike was priced in by the market, hence selling pressure on HUF may continue in the short term amid disappointing NBH.
  • Weakening HUF will continue to support inflation expectations and will put NBH in a difficult position in the coming months as the economic activity keeps decelerating.
  • By choosing to hike by 30bps, policymakers may have taken into account the recent flattening of the yield curves in EM markets and the fall in consumer and business confidence indicators in the CEE region.
  • GDP growth came in lower than expected in Q3 earlier this morning, and growth expectations could be reviewed significantly lower amid growing uncertainty and the sharp tightening in financial conditions.

To read the full story

Close

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.