EUR/HUF: Post-election rally and range view – ING
ING’s Frantisek Taborsky reports a strong post-election rally in Hungarian rates, especially at the long end, with FX appreciation slower than expected, suggesting heavy pre-election positioning.

ING’s Frantisek Taborsky reports a strong post-election rally in Hungarian rates, especially at the long end, with FX appreciation slower than expected, suggesting heavy pre-election positioning. Despite scope for some profit-taking, ING stays constructive on Hungary, expecting EUR/HUF to stabilise in the 355–360 range and further curve flattening, with long-end rates seen as main beneficiaries.

Hungarian assets seen benefiting after vote

"In Hungary, we will continue to monitor the post-election market behaviour."

"Yesterday we saw a massive rally, especially at the long end of the curve with rates outperforming bonds and a slower appreciation in FX than we expected."

"This indicates how heavy positioning was built in the market before the election, especially in the FX and bonds markets."

"However, we remain bullish on Hungary in general, even though we may see some further profit-taking today."

"We therefore continue to see EUR/HUF stabilising in the 355-360 range and further flattening of the curve, where we believe the long end should benefit the most after the election."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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