US President Joe Biden’s withdrawal from the new contest seems to have caused only slight movements in the international money and capital markets, for example, the euro/dollar jumped by 20 pips on Sunday night to 1.09, and then fell again to 1.0880. There is no sign of a major movement in the futures stock indices, neither on this nor on the news of the unexpectedly announced 10 basis point interest rate cut in China.
For the time being, the HUF was not moved either by the fact that, according to some experts, Hungary is heading towards a fuel crisis due to the blocking of Lukoil’s oil transit to Ukraine, which knocked out a third of Hungarian crude oil imports, and the Hungarian government only managed to manage the situation in the short term.
Against the euro, the HUF continues to be in the immediate vicinity of the 390 level, close to its peak in one and a half months on the interbank market.
It is trading near 358.5 against the dollar, and as the chart below shows, the exchange rate is moving very close to the 4-year rising trend line. Last week, it rose to around 356, but if it manages to break down in the next period, there would be a serious opportunity for further strengthening of the forint. Tomorrow’s MNB interest rate decision and the messages associated with it will certainly be important for market participants and may influence whether this trend break occurs or not.
The cover image is an illustration. Cover image source: Getty Images
Source: www.portfolio.hu
