Hungarian Forint Under Pressure Against Euro but Story Intact – ING
ING analyst Frantisek Taborsky reports broad risk-off sentiment in Central and Eastern Europe, with elevated oil prices and higher core yields pushing regional rates up. Hungarian assets have been heavily sold due to crowded longs, but the overall story for the forint remains intact.
ING's Frantisek Taborsky notes a broad risk-off move across Central and Eastern Europe (CEE), driven by elevated oil prices and rising core yields. These factors are pushing CEE rates higher, adding pressure on the Hungarian forint against the euro.
Heavy selling in Hungarian assets is attributed to the unwinding of crowded long positions. Despite the short-term pressure, Taborsky maintains that the fundamental story for the forint remains intact, suggesting the depreciation may be temporary.
The commentary underscores the current sensitivity of CEE currencies to global risk sentiment and commodity price movements.
Source: FXStreet Forex News