Created
: 2024.10.02
2024.10.02 19:17
The FX market has fully switched into risk-off mode and the whole emerging market space took a hit yesterday. The CEE region led the losses days before, so it was left behind yesterday, ING's FX strategist Frantisek Taborsky notes.
"However, the situation in the Middle East does not seem close to calming down and while we are getting more dovish news from the developed market world, CEE currencies are likely to remain under pressure for some time but fundamentals for a fading move later remain strong in our view. EUR/USD rapidly sliding lower will continue to keep CEE currencies under pressure."
"Although we can assume that local rates will not hold current levels for long if core rates continue yesterday's trend, in Poland and the Czech Republic more than enough rate cuts have already been priced in and downward space is limited. Additionally, we might receive some hawkish news from Poland's central bank this week and from the Czech Republic with the release of September's inflation data next week."
"So, across CEE, we see a growing FX and rates market divergence that will have to be closed at some point in the future, opening the door for fading the current FX weakness. The Polish zloty seems most appealing with the central bank meeting this week, while the Czech koruna may be attractive later. The Hungarian forint, on the other hand, will have the hardest path to finding stable ground within the CEE peers, in our view."
Created
: 2024.10.02
Last updated
: 2024.10.02
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy