Commerzbank: The Hungarian Forint's rally may lose momentum due to lingering political risks

Tatha Ghose from Commerzbank stated in a report that the Hungarian forint may reverse part of its gains as Prime Minister Májor Péter faces challenges in eliminating the political legacy left by his predecessor Orbán. Earlier, after Hungarian lawmakers voted to limit the prime minister’s term to eight years, thereby preventing Orbán’s return, the forint reached its highest level against the euro since September 2021. "However, over time, Májor will have to navigate a more challenging environment, which includes entrenched right-wing networks and the judicial system, making the process legally complex and time-consuming." The euro rose 0.1% to 349.52, after having fallen to 347.71 earlier. Commerzbank expects it will trade in the 350-360 range over the next quarter.