The USD to HUF exchange rate is currently bearish.
Key drivers include:
- The US Federal Reserve's potential interest rate cuts towards a neutral stance may weaken the USD as market players anticipate easing.
- Hungary's rising core inflation is putting pressure on the National Bank of Hungary to maintain or even raise rates, which supports the HUF.
- The impact of geopolitical tensions involving the US could affect investor sentiment towards the USD.
In the near term, the USD to HUF is expected to remain within a stable range, reflecting its current levels with limited volatility.
An upside risk could arise from stronger-than-expected US labor data that boosts USD demand. Conversely, a downside risk involves worsening geopolitical tensions that may lead to increased uncertainty and push the USD lower against the HUF.