The second day boost for the forint comes after Adam LeBor and others warned of a “setback” and had expectations that the Hungarian currency will fall. The reason for that prediction was overestimating the importance of three “infringement proceedings” against Hungary over details such as the legal standing of the data ombudsman. Such infringement proceedings are in fact neither rare nor terribly effective, over seven hundred of them are currently in progress against various EU countries. LeBor even raised the possibility of a 325 forint to 1 Euro exchange rate, quoting SG.
As the forint rose the credibility of such doom and gloom predictions began to falter.
Some members of the international press also took notice of the forint’s rally with articles such as:
Will this news make it’s way into future critical articles about Hungary?
Trading looked like this at the end of the day:
It would be very interesting to see what Adam LeBor has to say about this, how would he explain this. The reasons for this rally of the forint are not immediately apparent.