Economists at ING expect the EUR/HUF to move higher towards 415 in the short-term. However, positive headlines regarding the negotiations between the Hungarian government and the European Commission should drag the pair down to 400.

The forint will still have a tough time

“A move back towards 415 EUR/HUF is not out of the question over the coming days.”

“Still, the forint is the only currency in the region currently supported by a rising interest rate differential and we should see a HUF rally back below EUR/HUF 400 in the case of positive news from the European Commission. However, this is certainly not a matter for the next few days and the forint will still have a tough time.”