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18 Mar 2015
HUF supported in the near term – Danske Bank
FXStreet (Edinburgh) - Chief Analyst Lars Christensen at Danske Bank sees the Hungarian currency picking up pace in the near term.
Key Quotes
“Growth has been picking up in Hungary and, after years of stagnation, it is becoming one of the fastest-growing economies in central and Eastern Europe”.
“The Hungarian central bank (MNB) has been cutting interest rates in small steps. This has been justified as there is actually deflation now in Hungary (despite higher growth) and there is certainly a risk of further deflation in the coming months”.
“We continue to believe that Hungary’s fairly strong external position is likely to be supportive for the HUF in the medium term”.
“Furthermore, fairly strong growth and an expected pick-up in inflation are likely to keep the carry on the forint relatively attractive. We therefore continue to expect near-term appreciation of the forint”.
Key Quotes
“Growth has been picking up in Hungary and, after years of stagnation, it is becoming one of the fastest-growing economies in central and Eastern Europe”.
“The Hungarian central bank (MNB) has been cutting interest rates in small steps. This has been justified as there is actually deflation now in Hungary (despite higher growth) and there is certainly a risk of further deflation in the coming months”.
“We continue to believe that Hungary’s fairly strong external position is likely to be supportive for the HUF in the medium term”.
“Furthermore, fairly strong growth and an expected pick-up in inflation are likely to keep the carry on the forint relatively attractive. We therefore continue to expect near-term appreciation of the forint”.