Carry Trade To Lift Forint Higher

June 2008 | Market Strategy

Despite the June pause in the National Bank of Hungary 's (NBH) monetary tightening cycle, the forint has maintained its upward momentum. Most recently, the currency breached a key resistance level at HUF240.00/EUR, driving to as high as HUF234.78/EUR on June 30. It is now looking likely that the unit will reach the all time high of HUF230.60/EUR in the near-term. With little resistance to be found beyond this point, a firm breach of this level would be a major bullish signal, setting the forint up for gains toward HUF220.00/EUR.

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