Thursday, December 10, 2015

Hungary's overseas commerce surplus spikes to 7.Three% of GDP


The Hungarian overseas commerce surplus widened considerably in comparison with earlier yr. The primary learn of the determine was EUR603m in October vs. EUR283m a yr earlier than. The YTD commerce stability was EUR6.8bn in 2015, so it already exceeded the complete yr surplus of EUR6.3bn in 2014. The primary shock got here from the sudden slowdown of import progress dynamic from round eight% Y/Y in September to round four% Y/Y in October. The increasing family consumption might recommend that the import ought to speed up barely within the coming month, however it could be counterbalanced by lacking investments and the nice and cozy climate. So, it seems to be like that the Hungarian overseas commerce surplus might have a document learn this yr round EUR7.5bn or 7.Three% of GDP. The robust commerce stability determine confirms our view that the present account might have additionally a document surplus in 2015. CA stability was EUR2.5bn in 1H15 and based mostly on the overseas commerce figures and the utilization of the EU funds cash, the excess could be across the similar in 2H15 as properly, which signifies that CA is perhaps round EUR5bn in 2015. We anticipate that this large surplus might lower in 2016 because the home demand might stay robust in 2016 and the EU finds cash utilization might fall again considerably due to the brand new budgetary interval. However the nation’s gross exterior debt is more likely to average additional so it’s basically supportive for the forint within the medium-term.
Regardless of comparatively robust fundamentals the HUF weakened considerably within the final days along with different regional currencies (PLN, RON and so on.).
The EUR/HUF broke out from the vary of 309 and 315 (it was the buying and selling vary within the final 2 months) and we see essential resistance ranges round 318 and 320 respectively. The opposite cause of HUF’s weakening could be partly on account of market bets that some loosening of NBH’s financial coverage may come subsequent Tuesday. Whereas, the NBH might depart base fee unchanged at 1.35%, it might nonetheless change once more different financial instruments (in all probability touching the Three-month depo instrument or introducing some QE coverage to help the long-end of the yield curve).






















Currencies% chng
EUR/CZK27.02Zero.Zero
EUR/HUF315.9Zero.eight
EUR/PLNfour.35Zero.1
EUR/USD1.101.2
EUR/CHF1.08Zero.Three

















FRA 3×6%bps chng
CZKZero.25Three
HUF1.341
PLN1.55Three
EUR-Zero.15Zero

















GB%bps chng
Czech Rep. 10YZero.57four
Hungary 10YThree.565
Poland 10Y2.997
Slovakia 10YZero.781

















CDS 5Y%bps chng
Czech Rep.51Zero
Hungary160Zero
Poland72Zero
Slovakia51Zero



Hungary's overseas commerce surplus spikes to 7.Three% of GDP

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