VIEW: Goldman Sachs note that "for some.......>

FOREX: VIEW: Goldman Sachs note that "for some time now, the dovish inclinations

of the MNB have been one of the main reasons that we have preferred PLN and CZK

to HUF in the CEE region. More recently, the MNB's tightening of policy during

the coronacrisis, followed by personnel shifts in leadership, had suggested that

the leopard may have changed its spots. However, the surprise 15bp cut of last

week's meeting clearly signals a preference for dovish policy. The Forint

followed suit, weakening ~2% versus the Euro, while its regional peers have

traded relatively more resiliently last week. Given this-and even though further

easing is, to an extent, conditioned by Forint stability, as our economists have

highlighted-until we see tangible signs of a credible shift in policy, our rank

ordering within CE3 remains the same. Therefore, for investors looking to

express a positive view on the region, on the back of future European

outperformance, we reiterate our short USD/PLN recommendation."