Hungary Forint Starts Strong Ahead Of Key US Jobs Data
- 2 Jul 2010 12:04 PM
"Hungary’s forint has so far held onto its strength achieved by late Thursday, as wrinkles on foreheads started to smooth out on global capital markets. Investors abroad are unwilling to take bigger risks before the week’s most important macro data is published in the United States in the afternoon.
The forint is stable in early morning trading on Friday at around 285-286 to the euro. Late on Thursday it was still quoted north of 287 after sellers took the floor on US stock markets.
Investors appear to be cautiously optimistic at the moment.
FX markets are clearly in a wait-and-see mode: the USD has not moved an inch against the euro since late yesterday and the Swiss franc, considered a safe haven, has not changed a lot, either. The strengthening of the euro, however, is noteworthy: it has gained 2.5% to the USD yesterday.
Investors are cautious ahead of the release of a US employment report. The data could give guidance as to how large tensions are on the labour market overseas and whether these are large enough to jeopardise recovery.
The US economy may have shed 130,000 jobs in June, according to a Bloomberg survey of economists ahead of today’s government report on non-farm payrolls. A survey by Reuters projects 110,000 lost jobs. The data will be released at 14:30 CET."
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