The American ISM provider purchasing manager index its price component showed a significant acceleration when the data was released on Tuesday, which caused a fall in the US stock markets and also generated a wave of sellers in the global bond markets because
the belief that the Fed will really cut interest rates 3-4 times this year has wavered.
At the moment, the market is more confident of such a 25 basis point cut, and perhaps there will be another move.
Because of this, and the flow of news about the Trump administration’s plans to impose tariffs continues to keep the dollar at strong levels against the leading currencies, so the dollar/euro also stabilized around 1.03, and it is expected that it will continue to move sideways until the afternoon US data (number of new non-agricultural jobs, unemployment rate, hourly wages). Meanwhile, investors are also watching where will the US 10-year government bond yield move from the current 4.70% (which is a three-quarter-year high)because this basically determines the global risk appetite.
Despite all of this, yesterday the HUF was able to strengthen a little against the euro to around 413, but this morning we are seeing quotations close to 414 again.
Due to the further slight weakening of the forint and the persistent strength of the dollar, the dollar/forint quote is once again hovering around 402.5 on the interbank market, i.e. the forint still could not significantly move away from its two-year low, which it reached the other day at an exchange rate of around 405.
The cover image is an illustration. Cover image source: Getty Images
Source: www.portfolio.hu
