HUF, PLN and CZK set to gain ground against the euro – ING

The Central and Eastern Europe (CEE) region remains supported on all fronts. Therefore, economists at ING expect the likes of Hungarian forint, Polish zloty and Czech koruna to strengthen at the first half of the new week.

ECB meeting could result in a weaker CEE FX

“The CEE region continues to benefit from falling gas prices, rising interest rate differentials and friendly EUR/USD levels. The Hungarian forint should remain supported and enjoy this moment of peace created by recent central bank actions and global conditions. The rest of the region should also remain supported.”

“We see room for the Hungarian forint to move closer to 405 EUR/HUF, the Polish zloty to 4.760 EUR/PLN, and the Czech koruna to 24.450 EUR/CZK. However, the ECB meeting will come into play in the second half of the week, resulting in a lower EUR/USD and potentially weaker CEE FX.”