Index – Economy – The forint is in the pillars since the all-time low

Two weeks ago, on October 12, they asked for another 356 guilders for a single euro on the interbank exchange market. Since then, the Hungarian currency exchange rate has weakened almost continuously: around noon on Thursday, the forint moved around 369 against the euro.

International investor sentiment is very bad this week: on Wednesday, for example, the main European markets (London, Frankfurt, Paris) closed at 2.5-4.2 percent, but there were also heavy losses in America, where the New York Stock Exchange was key. They closed minus 3.4 to 3.7 percent. However, at noon on Thursday, European stock markets were not doing badly: they were up 0.2 to 0.5 percent from Paris to London, and Wall Street remained closed.

The forint is under pressure

Analysts say markets are driven by uncertainty surrounding the coronavirus epidemic and the US presidential election. If the international environment is bad, the forint tends to weaken.

With the significant intensification of the second wave of the coronavirus epidemic and the increasing number of closures and exit restrictions across Europe, the forint has come under increased devaluation pressure in recent days, causing the Thursday morning we were talking about a new all-time low for the forint against the euro. The Portfolio, which looked at the handrails in the technical analysis repository, asked the question “how long can the forint fall if the exchange rate moves to the 370 level”. The portal also identified three different potential exchange rate tiers for this case:

• according to the most favorable, the forint weakens a 370.6–371.6can stop in the lane,
• in the worst case, the next resistance is a 375when examining the exchange rate by another method,
• be 384The exchange rate of the forint against the euro can reach.

The forint exchange rate was around 368.85 against the euro around 12:15, but it was also at 369.24 in the morning, just 39 cents from the all-time low.