Societe Generale notes EUR/HUF rebounded from its 50-day moving average after a downside surprise in Hungarian CPI. Inflation remains below the MNB target, with the stronger Forint helping to curb price pressures and keep underlying trends subdued. The bank highlights comments from Finance Minister Karman and MNB Deputy Governor Kurali on potential HUFGB rallies and Euro adoption timing.
Forint support and euro plans
"Inflation in Hungary rose from 1.3% in August to 1.6% in September, 1.4pp below the target of the MNB."
"The stronger forint curbed price pressures and underlying price trends remained subdued."
"EUR/HUF rebounded from its 50dma at 364.55 after downside surprise in CPI."
"Finance Minister Karman claimed HUFGBs could rally when the government presents its budget and euro-adoption plans in mid-October."
"MNB Deputy Governor Kurali expects euro adoption two years after Hungary meets the common criteria."
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