USD/HUF off Two-Week Highs in Thin Trade, Set for 6.5% Annual Gain

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. 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.