USD/HUF Set to Test 2-Week Highs in Thin Trade

USD/HUF continued to edge higher in holiday-thinned trade on Tuesday amid lack of relevant macroeconomic data during the next several days. On the foreign exchange market, the USD to HUF exchange rate settled higher at 299.615, registering a 0.23% gain. During Tuesday’s trading session, currency traders saw the USD/HUF exchange rate within a tight trading range of 298.764 — 299.958.

USD was still drawing support from last week’s largely upbeat string of macro data, which suggested no further rate-cutting actions by the Federal Reserve in the near term. CME’s FedWatch Tool showed investors now saw a 4.2% chance of a rate cut occurring at the Fed’s policy meeting in March, down from 4.3% a week ago.

HUF traders will have to wait until early January for a fresh set of data and clues over Hungary’s economic health.

The spread between 3-year US and 3-year Hungarian bond yields, which reflects the flow of funds in a short term, shrank to 1.349% (134.9 basis points) on December 24th from 1.381% (138.1 basis points) on December 23rd.

On the Christmas Day holiday, Tokyo will be the only major Forex trading center open for business, but yet, volumes are expected to be exceptionally light. The US Dollar Index was almost unchanged at 97.68 in late Asian trade on Wednesday.

USD/HUF was down 0.12% to 299.200 in late Asian session on Wednesday, hovering below the big psychological number 300.00.


Currencylive.com is a news site only and not a currency trading platform.
Currencylive.com is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on currencylive.com do not represent our views.