EUR HUF trading
For traders who would like to expand or diversify their forex portfolio, the EUR HUF pair offers intriguing profit-making potential. This exotic pair tracks the value of one Euro (EUR) in terms of the Hungarian Forint (HUF). The Forint has been Hungary’s official currency since 1946, but only became fully convertible on the global market in 2001 after a period of high inflation.
The long-term future of HUF is unclear, however.
As of January 2020, Hungary is one of nine European Union (EU) member states that have not adopted EUR as its official currency. Much like others such as Romania and the Czech Republic, this is expected to happen at some point. But it is not yet known when, with initial target dates including 2008 now long since passed. Public support for adopting the Euro has also fallen.
In the short-term, however, the EUR HUF pair remains an option for investors looking for a less familiar forex instrument. Prone to volatility and showing bullish tendencies in recent times, the EUR HUF pair could be a useful addition to your trading portfolio in order to maximise returns.
EUR to HUF News
The relationship between Hungary and the wider EU has a major influence on EUR to HUF news. Hungary enjoys a strong trading relationship with its neighbours, as well as Russia. Demand for its goods is a key driver of the Hungarian economy. For traders tracking the EUR to HUF rate, it is worth keeping a close eye on commodity prices such as metals and building materials.
Any decision on when Hungary is set to adopt the Euro will also have consequences for the EUR to HUF rate. Economic issues forced Hungary to accept a $25bn bail out from the International Monetary Fund (IMF), EU and World Bank in 2008, which is part of the reason this was delayed. While it had been thought that 2020 could see it happen, it is likely to be pushed back further.
Growing political tensions between the EU and Hungary also has the potential to affect the EUR to HUF rate. The EU has objected to internal decisions made by the Hungarian government and has led to threats of sanctions. It is a dispute that could raise questions surrounding Hungary’s place in the union – and whether it will be permitted to join the Eurozone.
Investors should also take notice of any policy decisions by the European Central Bank if trading the EUR to HUF pair, as well as the performance of individual economies within the Eurozone.
EUR to HUF Chart
OANDA’s real-time EUR to HUF chart shows the current value of the Euro against the Hungarian Forint. Our unique pricing engine calculates accurate mid-market rates to keep traders informed of the latest movements in the market. It can provide insights into the historical performance of the EUR to HUF pair. But it should not be relied as a guarantee or prediction of future activities.