EUR/HUF to return below 410, EUR/PLN to move under 4.78 – ING

CEE continues to rally driven by lower gas prices. Economists at ING expect EUR/HUF to return to sub-410 levels while EUR/PLN is set to slip back below 4.78.

Favourable conditions for CEE to continue to rally

“In addition to lower gas prices, we see rising interest rate differentials across the region. In Hungary, we are at a new all-time high after Friday's NBH emergency rate hike and in Poland we are at the highest levels since early September.”

“With EUR/USD above recent lows, we thus see favourable conditions for CEE to continue to rally, driven by further gas price declines if the European Commission approves the proposed measures.”

“We see a good chance for the Hungarian forint to erase last week's losses and return below 410 EUR/HUF and the Polish zloty to move below 4.780 EUR/PLN.”