USD/HUF Extends Gains from Last Week ahead of Christmas

USD/HUF extended gains at the start of the holiday week on the back of solid US macro data released on Friday. The USD hit two-week highs against a basket of other major currencies after US final GDP estimate, PCE inflation and the consumer sentiment index came in line with market consensus and added to the case that the Fed will probably keep the target range for the federal funds rate intact in the near term.

The pair seemed to have retained the upside momentum after sales of new single-family houses in the US were reported to have risen 1.3% to a seasonally adjusted annual rate of 719 000 in November, recovering from a 2.7% decrease in October, as low mortgage rates continued to support local housing market.

In a recent speech, the US President Donald Trump said that the world’s two most powerful economies would “very shortly” sign their “Phase One” trade agreement. The deal was announced earlier in December as part of a bid to end the over 17-month long trade friction between the two countries, which has hurt global economic growth.

Meanwhile, the National Bank of Hungary reported last Friday that the country’s current account deficit had shrunk to EUR 230.1 million during Q3 of 2019 from EUR 586.3 million in Q3 of 2018.

The numbers followed the central bank’s monetary policy decision. The NBH left its benchmark interest rate intact at record low 0.9% on December 17th, after annual inflation in the country went up to 3.4% in November. The benchmark has been at the record low level since May 2016. As a result, last week HUF pared gains against USD, achieved between November 28th and December 13th, with the pair rebounding from 293.900 (December 13th low).

The US Dollar Index was little changed at 97.69 in late Asian trade on Tuesday, after reaching a two-week high of 97.82 yesterday.

From a macroeconomic perspective, the United States and Hungary are not scheduled to release any relevant reports today.

USD/HUF was up 0.04% to 298.790 in late Asian session on Tuesday. is a news site only and not a currency trading platform. 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 do not represent our views.