PLN, CZK, HUF: Dovish inflation favours HUF – Commerzbank

Source Fxstreet

FX market phase where the Polish zloty is outperforming the Hungarian forint continues, for good or bad reasons. In this phase, news on the zloty tends to be interpreted more favourably by the market consensus, whether or not this be fundamentally justified, while positive news on the forint tends to be underplayed, Commerzbank’s FX analyst Tatha Ghose notes.

Ongoing momentum of zloty outperformance continues

“Last week, we wrote in our preview that both the Czech Republic and Hungary were expected to display dovish inflation developments – but that any downward surprise from Hungary would make more difference because inflation there had been stubborn so far. We pretty much got those results on Thursday: Czech CPI dropped to target (maybe not on the misleading year-on-year basis, but it did so on seasonally-adjusted month-on-month basis); Hungary did not quite arrive there yet, though interestingly, the (misleading) year-on-year inflation rate hit the 3% target.”

“We maintain that while the Polish and Czech inflation trends have already been closer to target, the Hungarian data came as the most positive surprise this month. Hungary’s central bank, however, has decided to take it cautiously and signalled that a rate cut is unlikely at the forthcoming 22 October meeting. Probably the forint’s depreciation had more to do with this than inflation. Whatever the reason, this makes it doubly HUF-positive.”

“On the other hand, Poland’s central bank (NBP) has signalled a dovish turn at its recent press conference. Those who had viewed NBP’s artificial hawkishness in prior months as a source of support for PLN should now, at least, see this development as less supportive. In this sense, the past week’s developments should have favoured HUF over PLN. But, in practice, the ongoing momentum of zloty outperformance continued.”

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
EURUSD Long-term Forecast: Can ECB Hawks Overcome the Dollar Bullishness? As one of the most traded currency pair in the forex markets, the price of EURUSD affects many traders. Check out our EURUSD long-term forecast for more information.
Author  Mitrade
Mar 13, 2023
As one of the most traded currency pair in the forex markets, the price of EURUSD affects many traders. Check out our EURUSD long-term forecast for more information.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
Mar 13, 2023
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
Jan 04, Thu
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Japanese Yen stands tall near one-month top against USD on hawkish BoJ talksThe Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
Author  FXStreet
Mar 11, Mon
The Japanese Yen (JPY) rallied to the highest level since early February against its American counterpart on Friday amid bets for an imminent shift in the Bank of Japan's (BoJ) policy stance.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Jul 01, Mon
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Related Instrument
goTop
quote