Goldman Sachs advises traders to short the euro against the Hungarian forint amid growing discussions on euro adoption by Hungary’s incoming leadership following recent elections.
Revised EUR/HUF Forecasts
The investment bank updates its EUR/HUF projections to 355, 350, and 345 for the 3-month, 6-month, and 12-month horizons, respectively. These figures mark a downward revision from prior estimates of 390, 380, and 375.
New Short Trade Recommendation
Goldman Sachs launches a fresh trade idea: short EUR/HUF with a target price of 350 and a stop-loss at 372. The forint trades near 361 as of Friday.
Strategist Teresa Alves states that a 10% gain from the forint’s Thursday close would reach its historical overvaluation peak and match average levels seen in regional currencies like the Polish zloty and Czech koruna.
