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14 May 2015
Further easing expected in Hungary – Rabobank
FXStreet (Edinburgh) - Piotr Matys, Strategist at Rabobank, sees the Hungarian central bank cutting the benchmark rates further in the medium term.
Key Quotes
“The forint rallied 5.3% against the euro in Q1 on the back of ECB’s gigantic stimulus”.
“After increasing further in the first half of April, the forint trimmed its year-to-date gains to 3.32% when EUR/USD produced its impressive rebound”.
“The squeeze from the April low at 295.62 to recent high at 307+ failed to dent our bearish view on EUR/HUF based on the assumption that QE in the Eurozone will fuel capital inflows into Hungary”.
“We will be looking for attractive levels to sell EUR/HUF in the coming weeks as another wave lower should unfold at some stage in Q2 that could potentially bring into focus the 292~ threshold”.
“The NBH is likely to cut interest rates to at least 1.50% to curb HUF gains”.
Key Quotes
“The forint rallied 5.3% against the euro in Q1 on the back of ECB’s gigantic stimulus”.
“After increasing further in the first half of April, the forint trimmed its year-to-date gains to 3.32% when EUR/USD produced its impressive rebound”.
“The squeeze from the April low at 295.62 to recent high at 307+ failed to dent our bearish view on EUR/HUF based on the assumption that QE in the Eurozone will fuel capital inflows into Hungary”.
“We will be looking for attractive levels to sell EUR/HUF in the coming weeks as another wave lower should unfold at some stage in Q2 that could potentially bring into focus the 292~ threshold”.
“The NBH is likely to cut interest rates to at least 1.50% to curb HUF gains”.