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The improved mood in the market is boosting the Hungarian Forint in early trade on Friday, picking it up off all-time lows and snapping an 8-session losing streak. The Forint weakened to a record low of 336.09 overnight.

At 09:00 UTC the Forint has jumped 2.2% to 326.19. The USD/HUF has traded a daily range, so far, of 125.35 – 336.09.

Rising Risk Sentiment Lifts Hungarian Forint

The perceived riskier currency of the pair is pushing higher as the broad mood in the market improves. This week has been a very volatile week across the financial markets. Central banks around the globe jumped in with measures to shore up their economies. The speed and aggression with which policymakers have acted to cushion the economic blow from coronavirus has offered relief to investors. This in turn has lifted risk sentiment.

Asian stock markets gained overnight, and European stocks are moving higher this morning as investors are showing willingness to cautiously add risk back into their portfolio. This cautious rotation back into riskier assets is boosting the Hungarian Forint.

There is no high impacting Hungarian economic data due to be released today. Investors will continue monitoring coronavirus developments. Next week the National Bank of Hungary will meet in a scheduled rate decision announcement, on Tuesday.

USD Eases As Senate Debates Rescue Package

The Dollar is trading lower versus its peers after soaring across the week. The Dollar has been in demand as investors and businesses sought the US Dollar for its safe haven properties, even amid worrying signs from the US economy

Data on Thursday revealed that US jobless claims surged 70,000 to 281,000 in mid-March as coronavirus triggered layoffs. Treasury Secretary Steve Mnuchin warned that the deadly virus could propel unemployment to 20%.

The US Senate is debating a $1 trillion rescue package which aims to provide direct financial relief to the American public and smaller businesses, in a bid to stem the economic fallout from coronavirus. The improved sentiment amid strong policy responses has eased fears. US stock markets are pointing to a positive open.

The US economic calendar is quiet today. US new home sales are unlikely to attract much attention given that they are from February, before coronavirus escalated in US.