USD/HUF: Hungarian Forint Slips Lower, US GDP In Focus

The Hungarian forint strengthened versus the US dollar on Thursday, snapping a two day losing streak. The US dollar Hungarian forint declined 0.1% to close at 295.25. The pair is advancing in the Asian session on Friday. Across the week, the US dollar advanced 0.25%.

Moves in the US dollar were muted in quiet holiday trade on Thursday, as investors weighed up President Trump’s impeachment and encouraging comments by US Treasury Secretary Steve Mnuchin.

The dollar barely reacted to Trump being impeached by the House of Representatives. He was impeached on charges of abuse of power and obstruction of Congress. The dollar’s muted reaction is because Trump is expected to be acquitted in the Republican led Senate.

Trade comments from Treasury Secretary Steve Muchnin hardly provoked a reaction from US dollar investors. Steve Muchnin said that he was confident that the phase one trade deal would be signed in January.

Today investors will look towards US GDP data. Analysts are expecting the data to show that the US economy grew 2.1% year on year in the third quarter. This would be in line with the previous reading.

The dollar has been boosted by stronger data this week, which has increased expectations that the Federal Reserve will not restart its rate cutting cycle in 2020, after three rate cuts this year. Should the GDP data print above the 2.1% forecast, the dollar could push higher.

Hungarian Current Account Data Up Next

The Hungarian forint was in favour in the previous session after falling earlier in the week. The currency is on course to have lost ground versus the US dollar across this week, despite the Hungarian Central Bank raising its GDP outlook and raising its inflation outlook on Tuesday. Yet despite these upward revisions the National Bank of Hungary said that it would maintain its loose monetary policy as it says that risks had become balanced.

Today investors will look towards the release of the Hungarian current account figures for the third quarter. Analysts are expecting an account deficit of -€0.29 billion in the third quarter, after a €0.12 billion deficit on the second quarter of the year.

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