The Hungarian Forint is falling versus the stronger US Dollar at the start of the week. The forint is extending losses after shedding 2.4% of its values versus the greenback in the previous week. The US Dollar Hungarian Forint exchange rate closed the previous week at 320.05.
At 09:15 UTC, USD/HUF is trading 1% higher at 323.00. This is at the upper end of the daily trading range of 320.29 – 323.57 as lock down extensions in Europe and US raise fears of deeper global recession.
US Stay At Home Guidance Extended
Investors are once again seeking safe haven assets and currencies, as hopes of a quick end to the US shutdown measures were dashed over the weekend. On Sunday, President Trump announced that the stay at home guidance will be extended until the end of April. Just last week, President Trump said that he US would be open for business after Easter.
Trump’s change of plan comes following dire projections from his advisers concerning the spread of coronavirus in the US. With the stay at home guidance extended, investors are fearing the increased negative impact that the move will have on the US economy. Recession fears are mounting.
Viktor Orban Seeks Sweeping Powers
The Forint lost ground across the previous week as investors remained glued to coronavirus developments and stimulus efforts. On Friday, Hungary became the latest country to announce stricter measures for the coming two weeks in a bid to control the spread of coronavirus. Prime Minister Viktor Orban said that citizens must maintain social distancing rules. They can go to work, shop and undertake limited exercise outside. However, they are not allowed to be in groups.
Today Hungary’s government is expected to endorse a bill giving Viktor Orban sweeping new powers, which he says he needs to fight the coronavirus pandemic. However, critics both at home and abroad have condemned the “anti-coronavirus defence law”, as handing Orban unnecessary and unlimited power, more useful for cementing his leadership rather than tackling the virus. The political developments could drag on demand for the Forint.
Today there is no high impacting Hungarian data. Tomorrow producer price index data and wage data are unlikely to attract much attention as they are from February and January respectively. They are from before the coronavirus outbreak, meaning that they are considered out of date.
