The USD to HUF pair is unlikely to be a reliable long-term option, however. Hungary has been expected to adopt the Euro as its official currency since the early 2000s. But various concerns have pushed this back until 2020 at the earliest. As such, the leading focus for USD to HUF news will be any updates and decisions on when the Forint is to be phased out.
Hungary’s economic performance is also strongly driven by demand for its export services and goods, which makes up around 85% of national GDP. Machinery, metals and building materials are important markets for Hungary, with a heavy dependence on its European trading partners. As such, the USD to HUF rate can be left exposed to economic news from the Eurozone.
There is a potential risk to Hungary’s trading relationship with the EU that investors should be aware in terms of the USD to HUF rate. Since prime minister Viktor Orban came to power, the EU has raised concerns over the rule of law in Hungary. The possibility of sanctions means the flow of trade between Hungary and important partners could be under threat.
As with any pair involving the US Dollar, anyone trading the USD to HUF pair should remain up to date with policy decisions and announcements from the Federal Reserve. While the economy of the US will feel the impact first, there could be a subsequent impact on the economies of the Eurozone and Hungary that drive the value of the Forint.