Goldman Sachs advises traders to short the euro against the Hungarian forint as Hungary’s new leadership explores joining the eurozone following recent elections.
Updated EUR/HUF Forecasts
The firm has adjusted its EUR/HUF projections to 355 for three months, 350 for six months, and 345 for 12 months, down from prior estimates of 390, 380, and 375.
New Trade Recommendation
Goldman Sachs launches a fresh trade idea: short EUR/HUF targeting 350 with a stop-loss at 372. The forint trades near 361 as of Friday.
Teresa Alves, a strategist at the bank, notes that a 10% gain from Thursday’s forint close would match its historical overvaluation highs and align with valuations of regional peers like the Polish zloty and Czech koruna.
