The euro (EUR) is currently in a range-bound phase against the Hungarian forint (HUF).
Key drivers include:
- The European Central Bank's data-driven interest rate approach, which maintains flexibility to address inflation and growth, supporting the euro.
- The HUF has gained strength due to the Hungarian National Bank's disciplined monetary policies, contributing to recent appreciation.
- Economic growth in the Eurozone is projected positively, reflecting fiscal measures that bolster confidence in the euro's long-term stability.
In the near term, EUR/HUF is expected to fluctuate within the existing stable range.
An upside risk for the euro includes stronger-than-anticipated economic data from the Eurozone, while a downside risk involves potential geopolitical tensions that may destabilize market sentiment, particularly connected to the ongoing war in Ukraine.