Market sentiment has improved worldwide since Tuesday evening despite an announcement of a Greek referendum on the agreements reached at last week's Eurozone summit. Wednesday morning's moderate rise may also be seen as a market correction following massive losses on Monday and Tuesday. Trends over the next few days are likely to be dictated by news from Greece, rate decisions by the Fed and the ECB, and Friday's US job market report.
11:08 a.m. Forint losing strength
Wednesday morning saw the forint lose whatever little strength it has been able to muster up in the early morning trade, with EUR/HUF rates once again near 307. This is no surprise considering the southward movement of European stocks after a promising start after the opening bell.
8:40 a.m. Halloween sees Hungary forint jump despite Greek news
Market sentiment has improved worldwide since Tuesday evening despite an announcement of a Greek referendum on the agreements reached at last week's Eurozone summit. Wednesday morning's moderate rise may also be seen as a market correction following massive losses on Monday and Tuesday. Trends over the next few days are likely to be dictated by news from Greece, rate decisions by the Fed and the ECB, and Friday's US job market report.
Supported by this moderate improvement in global investor sentiment, the value of the Hungarian forint vs. the euro has risen from 307 to 305 overnight. The EUR/HUF pair peaked at almost 310 amid significantly heightened risk aversion worldwide on Tuesday while markets in Hungary were closed for four days in a row due to the Halloween bank holiday.
The weakness of the forint was manifested last Thursday and Friday when the currency failed to make considerable gains despite an excellent global market environment - unlike regional peers such as the Polish zloty or the Czech koruna. On Monday and Tuesday the forint was still too weak to catch up with the latter but at least the gap did not widen any further.
The exchange rate of the euro vs. the US dollar responded negatively to news of a Greek referendum on the joint European bailout plan; as a result USD/HUF quotes skyrocketed from last Friday's range of 210-214 all the way to 227 by Tuesday. The rate was seen around 222.5 on Wednesday morning CET as markets in Hungary opened after a 4-day bank holiday.
The Swiss franc rose to a 1-month high vs. the euro amid uncertainty lingering over the Eurozone. As a combined result of this and the general weakness of the forint vs. all major currencies, the CHF/HUF rate jumped as high as 254 yesterday with a minor correction witnessed on Wednesday morning at 251.
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts,
spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas
