Outlook for Eur/huf

Quotes from Commerzbank Corporates & Markets:

-HUF: The analysts polled by Bloomberg agree that the Hungarian central bank will cut its key rate further today. The MNB has communicated this very clearly. There is only disagreement about the size of the rate step. Will it be 10, 15 or 20bp after all?

-We are of the view despite historically low inflation levels the MNB will initially remain cautious and only cut key rates by 10bp. HUF is not going to benefit from that decision though as the MNB will make it clear at the same time that the rate cut cycle is far from over.

-So markets can continue to speculate how many rate steps will follow over the coming months. That results in upside potential for EUR/HUF. The material has been provided by InstaForex Company – www.instaforex.com

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