EUR/PLN seen above 300 in the next months – Rabobank

Piotr Matys, FX Strategist at Rabobank, expect the Hungarian Forint to remain above the key 300 handle in the next months.

Key Quotes

“The NBH is likely to be the last central bank in the CEE region to start normalising its monetary policy. As long as a strong preference for an ultra-accommodative policy (as reflected in various unorthodox measures including buying mortgage-backed securities) prevails, the HUF will struggle to gain a better traction against the euro and may trim its 12-month gains vs the USD should the Fed accelerate the pace of tightening”.

“We anticipate EUR/HUF to hover above the 300 level throughout this year. Rising trade tensions between the EU and the US (President Trump threatened to impose higher tariffs on European cars) would lift EUR/HUF to at least 315 level”.