Updated
Updated · tmgm.com · Jul 20
Forint Slides Past 363 as US-Iran Tensions Keep CEE Assets Under Pressure
Updated
Updated · tmgm.com · Jul 20

Forint Slides Past 363 as US-Iran Tensions Keep CEE Assets Under Pressure

2 articles · Updated · tmgm.com · Jul 20

Summary

  • EUR/HUF traded around 363 on Friday, near post-election levels, with the forint the hardest-hit CEE currency as risk-off sentiment from escalating US-Iran tensions persisted.
  • ING said the regional data calendar is too light to offset the global backdrop, leaving CEE assets driven mainly by the lack of clear de-escalation in the US-Iran conflict.
  • Hungary's central bank is still expected to cut rates by 25 basis points to 5.75%, while guidance on whether recent FX pressure alters that easing path will be closely watched.
  • Turkey's central bank is expected to hold at 37%, and Poland's central bank may still consider cuts, underscoring how monetary policy expectations are adding to pressure across the region.

Insights

Can billions in EU funds save the Hungarian forint from its own central bank's controversial rate cuts?
With its currency tumbling, is Hungary's monetary policy a calculated risk or a path to economic crisis?