KBC Market Research Desk
KBC Bank
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Forint partly wipes out recent loses
Hungarian PPI remains in negative territory
Central European currencies remained stable on Monday. In the absence of market moving data, the Czech koruna together with the Polish zloty fluctuated within a narrow range and only the Hungarian forint wiped some of recent loses to end the session at 311.1 EUR/HUF.
Today, the Central Statistical Office published fresh data on industrial producer prices in Hungary. The data show that in the segment of factory prices, like in the area of consumer goods, inflation pressures have remained weak. Producer prices fell by 0.4 % in August, compared to the same period previous year, and rose by 0.7 % on monthly basis. The results were mainly influenced by increasing prices in manufacturing of computers, electronic and optical products and chemicals, while energy prices slightly dropped. The news concerning Hungarian PPIs posed little surprise to analysts and hardly becomes a market mover.
Regarding other releases, regional markets will undoubtedly pay big attention to recent inflation developments in the Euro area. In our view, EMU inflation may slightly surprise on the upside, which, however, would not be enough to change our prediction of future ECB´s behaviour. Thus we believe that also in this case, the impact on regional currencies will be limited.
This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.
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