CEE continues to rally pushed by decrease gasoline costs. Economists at ING anticipate EUR/HUF to return to sub-410 ranges whereas EUR/PLN is about to slide again beneath 4.78.
Beneficial circumstances for CEE to proceed to rally
“Along with decrease gasoline costs, we see rising rate of interest differentials throughout the area. In Hungary, we’re at a brand new all-time excessive after Friday’s NBH emergency price hike and in Poland we’re on the highest ranges since early September.”
“With EUR/USD above current lows, we thus see beneficial circumstances for CEE to proceed to rally, pushed by additional gasoline value declines if the European Fee approves the proposed measures.”
“We see a very good probability for the Hungarian forint to erase final week’s losses and return beneath 410 EUR/HUF and the Polish zloty to maneuver beneath 4.780 EUR/PLN.”
