SocGen grows upbeat on Hungary forint, sees marked firming ahead

Analysts at Societe Generale have been rather bearish on Hungary’s forint over the past few weeks and months but now their outlook on the HUF has turned around. For end-2013, for instance, they project EUR/HUF to appreciate to 265.

“Beyond persistent contagion risks from the eurozone and weak economic prospects, there are some supportive factors for the HUF’s medium-term outlook as the official negotiations on a programme with the IMF are likely to be initiated over the next few months,” said Gaelle Blanchard, analyst at SocGen in London, in a research note on Thursday.