Goldman Sachs strategists advise traders to short the euro against the Hungarian forint, citing discussions among Hungary’s incoming leaders on potential eurozone membership following recent elections.
Updated Forecasts and Trade Recommendation
The firm has revised its EUR/HUF forecasts to 355 for three months, 350 for six months, and 345 for 12 months, down from previous projections of 390, 380, and 375.
Goldman Sachs initiated a fresh trade idea: short EUR/HUF targeting 350, with a stop-loss at 372. The forint traded near 361 on Friday.
Strategist’s Analysis
Teresa Alves, a strategist at Goldman Sachs, notes that a roughly 10% appreciation from the forint’s Thursday close would match its historical overvaluation peak and align with valuations of regional peers, including the Polish zloty and Czech koruna.
