Having spent three days in an almost motionless state Hungary’s forint has started to firm versus the key currencies, as favourable U.S. macro data helped improve global investor sentiment.
The forint has been steady right next to 279 versus the euro since Tuesday. On Thursday afternoon it has appreciated to 277.50, which is still not much of a change, though. Against the Swiss franc the HUF firmed to around 231 and it reached 225.50 to the USD on the interbank market.
A more complex look at global money and capital market shifts will reveal that the usual correlations have changed. The USD firmed markedly to the euro over the past two days from around 1.24 to 1.2260, but unlike previously this did not weaken the forint against the euro, it rather “froze" the Hungarian currency. The chart below clearly shows the opposite trends in EUR/USD and EUR/HUF rates.
The forint’s motionless state is not a unique feature in the region, however. Poland’s zloty has shown the same pattern vs. the EUR, while the Czech koruna gradually strengthened to a three-month high.
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