GBP/HUF Outlook: Likely to move sideways, as the rate is near its recent average and lacks a clear driver.
Key drivers:
• Rate gap: The Bank of England is maintaining its interest rate at a higher level compared to the National Bank of Hungary, which keeps its rate steady.
• Risk/commodities: Recent stable oil prices have generally supported both currencies, but no significant impact is felt on the GBP/HUF exchange rate at this time.
• One macro factor: UK retail sales and PMI figures have exceeded forecasts, suggesting economic resilience, but without causing significant movement in GBP/HUF recently.
Range: The GBP/HUF rate is expected to hold its current position within the recent 3-month range, as the rate has been stable.
What could change it:
• Upside risk: Strengthening UK economic indicators could boost the pound.
• Downside risk: Political uncertainties in the UK could undermine investor confidence, affecting the pound negatively.