USD/HUF came off a two-week high of 299.920 in light-volume trade on Thursday. The pair moved within a range between 297.640 and 299.530 and was on track to gain nearly 6.5% this year.
USD/HUF received support, distancing from the intraday low area, after the weekly report by the US Labor Department showed the number of Americans filing for unemployment assistance dropped by 13 000 to a seasonally adjusted 222 000 during the business week ended December 20th. The numbers suggested continued labor market strength, despite volatility in claims around the US holiday season.
With the US rate of unemployment at 3.5% in November, the lowest in almost 50 years, stronger consumer spending should support a moderate economic growth, while mitigating the effects from months-long trade frictions between the US and China.
In this line of thought, the report on US consumer confidence by the Conference Board at the start of next week will be closely watched.
The spread between 3-year US and 3-year Hungarian bond yields, which reflects the flow of funds in a short term, was at 1.349% (134.9 basis points) on December 26th, unchanged from December 25th.
As far as Hungarian economic outlook is concerned, in its latest biannual report the European Bank for Reconstruction and Development revised up its full-year 2019 GDP growth forecast to 4.6% from 3.7% in the prior publication.
The same full-year growth rate is projected by the International Monetary Fund in its November 2019 Regional Economic Outlook report for Europe.
For 2020, the EBRD projects a 3.1% GDP growth, while the IMF forecasts a 3.3% growth.
The US Dollar Index was down 0.17% to 97.40 in late Asian trade on Friday. In terms of economic calendar, the United States and Hungary are not scheduled to release any relevant reports today.
USD/HUF continued to slide on Friday, being down 0.19% to 297.340 in late Asian session.
