HUF Rally Faces Fiscal Risks – Societe Generale

Societe Generale strategists highlight that the Hungarian forint (HUF) has posted its best quarterly performance since 2009. The rally is supported by Hungary's shift toward a more pro-European Union stance and expectations of renewed access to EU funding.

However, the analysts caution that EUR/HUF is struggling to hold below the 350 level. Emerging fiscal risks under the current government’s policies are creating headwinds, raising concerns about the sustainability of the forint's recent gains.