Economists at ING expect the EUR/HUF pair to hover around the 370 level in he near-term. Nonetheless, EUR/HUF could drop to the 355-360 area on a sudden de-escalation in geopolitics.

Forint remains in the grip of rule-of-law conflict

“A weaker forint may mean a more aggressive central bank, but for now, it is not a deal-breaker for the market and it is waiting for news from the government's conflict with the EU to reveal more and set the path for the currency.”

“We see EUR/HUF around 370 in the short run with a possible quick move to 355-360 should we see a sudden de-escalation in geopolitics.”