Economists at ING discuss Hungarian Forint (HUF) outlook.

Forint to hover within a tight range in the summer

We continue to see a working framework for the coming weeks in the 368-378 EUR/HUF range.

We believe that the market will use weaker levels as a new entry point to build positions in the Forint to benefit from a still very attractive carry. On the other hand, at the lower end of the range, bets will rise on more easing, limiting HUF upside.

We see potential for a positive breakout on an EU deal later this year.