Disappointing GDP data and Fed decision – What is driving the Hungarian forint now?
The Hungarian economy grew more slowly in the second quarter than expected, but the trade balance showed a favorable surplus in June. In the foreign exchange market, the forint is strengthening against the euro and the dollar, which is partly due to market expectations regarding the Fed’s upcoming interest rate decision and subsequent communication, which indicate a weakening of the dollar.
The Hungarian economy grew at a slower pace than expected in the second quarter, while the trade balance in June exceeded expectations. Meanwhile, the forint is strengthening against both the euro and the dollar. The performance of the domestic currency is partly supported by the fact that the markets considered the Fed’s Wednesday interest rate decision and the subsequent communication as a signal for a weakening of the dollar.
