Further gains across CEE FX albeit at a slower pace – ING

CEE FX showed a strong rally last week. Economists at ING expect the same story this week.

Global conditions boost the region

The region should still benefit today from EUR/USD's move higher late last week. 

Sentiment remains open to risk and the renewed fall in gas prices to the lowest levels since early June is playing into the hands of the HUF in particular. The calendar in the region has little to offer and so the main focus will be on the global story. 

Overall, we expect further gains across the region albeit at a slower pace. The Hungarian Forint remains our favourite in the CEE region. We expect the Forint to strengthen further below 373 EUR/HUF. However, we also expect further gains from the Polish Zloty and Czech Koruna with moves below EUR/PLN 4.40 and EUR 23.70/CZK.