CEE FX: Stable ranges as data cluster looms – ING

ING strategist Frantisek Taborsky expects Central and Eastern European (CEE) FX to stay broadly stable this week despite volatile rates and global headlines. The central bank of Hungary Magyar Nemzeti Bank (MNB) is seen holding at 6.25% with focus on guidance, while regional data and political developments are monitored. Taborsky notes EUR/PLN, EUR/CZK and EUR/HUF are likely to remain within established ranges, with some hawkish risk from Hungary.

Regional banks and politics in focus

"The CEE region should be more visible this week compared to a quiet last week."

"On Tuesday, the National Bank of Hungary will decide on rates for the first time since the general election."

"At 6.25%, they should remain unchanged, and attention will be on forward guidance amid the energy shock – but also significantly stronger FX in response to the election result."

"CEE FX remains stable despite significant volatility in rates and global headlines."

"EUR/PLN and EUR/CZK seem to be strongly bound in ranges of 4.220-250 and 24.250-400, which will likely not change much this week either."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)