GBP/HUF Outlook: Slightly positive, but likely to move sideways as the rate is near its 90-day average and lacks a clear driver.
Key drivers:
• Rate gap: The Bank of England is expected to keep rates on hold while the National Bank of Hungary maintains its higher rate, which supports the forint.
• Risk/commodities: Oil prices remain above average, impacting inflation and economic outlooks for both currencies but generally favoring the forint.
• One macro factor: The UK's manufacturing sector showed growth in January, which could help support the pound in the short term.
Range: The GBP/HUF is likely to hold within its recent range, showing some stability around current levels.
What could change it:
• Upside risk: Stronger-than-expected UK economic indicators could boost the pound.
• Downside risk: Any hints of future interest rate cuts from the Bank of England could weigh on the pound’s value.