CEE: FX remains rather muted in EUR-crosses – ING
|After the inflation numbers in Hungary and the Czech Republic, this morning we also saw the numbers in Romania. November inflation rose from 4.7% to 5.1%, slightly above market expectations, ING’s FX analyst Chris Turner notes.
The complete inflation picture
“Although inflation should fall again in the coming months, we see the National Bank of Romania returning to rate cuts in the second quarter of next year at the earliest. However, for now, the main theme remains the fiscal and political situation after the election in Romania. This is probably the NBR's focus for now as well and inflation is more of a secondary theme.”
“Market attention should shift to the sovereign bond auctions in Poland and the Czech Republic before the end of the year. In both cases, we should see lower supply in December than in previous months supporting bond valuations. However, weak demand remains an issue in Poland, which should indicate an outlook for next year where supply will remain heavy.”
“FX remains rather muted in EUR-crosses where the Hungarian forint saw some retracement of previous fast gains. The Polish zloty and Czech Republic koruna remain fairly priced versus rates for now in our view. However, we see more CEE weakness against USD crosses coming from the EUR/USD dip, which remains our view since the US election.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.