Hungary: All eyes on Monetary Council today - TDS

According to analysts at TD Securities, there is little doubt that the Hungary’s Monetary Council (MC) will take its first step on the path of policy "normalization" today.

Key Quotes

“This has been flagged for some time by the NBH, with a move in core inflation ex indirect tax effects above the 3% target stated as being a potential trigger for the process to begin - in February this core measure moved up to 3.2% Y/Y.”

“We think there is a consensus that the NBH will reduce the amount of HUF liquidity provided to the market through FX swaps. What is less clear is if they will change interest rates.”

“In the Bloomberg survey, 9/20 respondents expect the O/N Deposit Rate to remain at -0.15%, but 6 expect a 10bps hike and 5 expect a 15 bps hike. We are inclined to take previous guidance from the NBH at face value and to think that the first move in normalization will not involve a hike.”

“A lot will depend on the forecasts in the March Inflation Report, which the MC will have to hand, but we think that recent HUF strength might embolden them to respond fairly dovishly to the move in core inflation above the 3% target.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD looks to extend the recovery above 1.1250

The recovery in the EUR/USD pair from near 1.1235 lows appears to have gained traction in the European trading, as the bulls now look to regain control above the 1.1250 barrier amid renewed US dollar weakness across the board and ahead of the US existing homes sales data.


GBP/USD side-lined near 1.3000, awaits US data

The GBP/USD pair continues to consolidate in a 10-pips slim range below 1.3000 so far this session, as the bulls lack momentum amid no fresh catalysts and marginal volatility. Next of relevance is US data while the key UK cross-party Brexit talks remain in focus this week. 


USD/JPY: lifeless just below 112.00

Japanese Nikkei moved marginally higher, also US Treasury yields in thin market conditions. US to release minor macroeconomic data as markets slowly return to normal.


Bitcoin price prediction: BTC/USD bulls set eyes on $5,300

Bitcoin (BTC) topped at $5,360 and has been moving lower ever since. Generally, the price is oscillating in a tight range limited by $5,200 on the downside and $5,300 on the upside.

Read more

Gold: Intraday positive move falters near 100-hour SMA

The precious metal was seen trying to build on Friday's attempted bounce from a support marked by 50% Fibonacci retracement level of the $1196-$1347 recent up-move.

Gold News