EUR/HUF bounced back from a key support line

The pair bounced back from a key support line, sending the pair higher towards its previous high. The Nemzeti Bank, Hungary’s central bank, hold onto its current benchmark interest rate of 0.90%. This was despite investors’ concern on Hungary’s surging inflation. Hungary is one of the fastest growing economies in the European Union. However, the country also holds the record for the largest inflation among EU member states in 2019. Brexit Party leader Nigel Farage predicts Italy, Denmark, and Poland to be next countries to exit the European Union. However, Hungary is not on the list. This was despite Hungary being the leader of the eastern and nationalist bloc, the Visegrad Group. Analysts claim that the reason for its exclusion was its dependency on the EU funds. Moreover, Hungary is holding the Enlargement Portfolio of the European Union. This ensures that the opposition to the Germany-Franco leadership will not be the first to secede.