Forint Weakens After Hungary's June Inflation Misses Forecasts
Hungarian forint weakened against the US dollar on Tuesday after Hungary's annual inflation rate eased to 1.7% in June from 1.8% in May, missing expectations of 1.8%. Consumer prices were unchanged from the previous month, while annual core inflation held steady at 2%, indicating underlying price pressures remained stable despite softer headline inflation. "Based on yesterday's pricing, the market was pricing around 150bp of easing and a 4.50% terminal rate, in line with our forecast, assuming BUBOR remains above the policy rate at the end of the cycle," wrote ING strategists in a Tuesday note. On the US side, the dollar stayed firm before Wednesday's release of the Federal Reserve's June meeting minutes as traders looked for policy signals under Chair Kevin Warsh, while the US Dollar Index traded near 100.97. At the time of writing, USD/HUF was trading at 309.79, up 0.21%.
Hungarian forint weakened against the US dollar on Tuesday after Hungary's annual inflation rate eased to 1.7% in June from 1.8% in May, missing expectations of 1.8%.
Consumer prices were unchanged from the previous month, while annual core inflation held steady at 2%, indicating underlying price pressures remained stable despite softer headline inflation. "Based on yesterday's pricing, the market was pricing around 150bp of easing and a 4.50% terminal rate, in line with our forecast, assuming BUBOR remains above the policy rate at the end of the cycle," wrote ING strategists in a Tuesday note.
On the US side, the dollar stayed firm before Wednesday's release of the Federal Reserve's June meeting minutes as traders looked for policy signals under Chair Kevin Warsh, while the US Dollar Index traded near 100.97.
At the time of writing, USD/HUF was trading at 309.79, up 0.21%.