Like most European currency crosses, the EUR/HUF combination is well suited to investors looking to diversify their portfolios beyond the four majors. Driven by the correlation between two major economies - Hungary and the Eurozone – the relationship between the Hungarian forint and the Euro tends to be relatively predictable. If you’re a trader making your first foray into more exotic combinations, the EUR/HUF pair could be ideal for you.
In 2001, the Hungarian forint was tied to the Euro, whose corridor was within the limit of EUR/HUF 240.01-324.71 and it was clear that until 2008 it wouldn’t reach either the upper or the lower limit.
Already in 2008, the National Bank of Hungary refused to bind the forint in order to make the national currency exchange rate stronger and reduce inflation as well (the strongest inflation in Hungary in 1946 was about 400% per day). The main factors that may affect the exchange rate of EUR/HUF is the situation in the EU and in Hungary itself.
If you are interested in trading the EUR/HUF, contact FxPro today to open trading account in several minutes.