EUR/HUF: Orban measures to weaken the HUF – Danske Bank

Coronavirus measures taken by Viktor Orban could intensify the disagreements between Hungary and the EU and, therefore, weaken the HUF, according to analysts at Danske Bank. EUR/HUF trades at 358.785.

Key quotes

“Coronavirus emergency measures have been taken, which effectively support Orban’s domestic political power as well. While this is hardly a big mover in EUR/HUF, it does have the potential to amplify the already ongoing disagreements between Hungary and the EU.”

“These somewhat right-wing initiatives did lend support to EUR/HUF yesterday and more HUF weakness could come at a later point in time as a result.”