The USD to HUF exchange rate maintains a bearish bias due to anticipated Federal Reserve interest rate cuts and improving global economic conditions.
The key drivers include:
- The Federal Reserve is likely to cut rates further, putting downward pressure on the USD.
- Stronger commodity prices may support the HUF, leading to overall currency volatility.
- Inflation trends in Hungary, while slightly below expectations, could delay interest rate cuts by the central bank, affecting HUF stability.
In the near term, the USD to HUF is expected to remain within a stable range, trading closely around its recent levels.
Upside risks include a surprise decision by the U.S. Federal Reserve that may strengthen the USD unexpectedly. Conversely, a significant increase in Hungary's inflation could prompt the central bank to maintain higher rates, potentially leading to HUF depreciation.
Recent price data shows the USD at 330.4, near its 3-month average and within a tight range, suggesting limited volatility for now.