Reuters
"In characteristic high-beta fashion, the CE3 currencies are now selling off on the back of the weak euro (versus dollar), with the highest-beta – forint – underperforming the most," Commerzbank said, referring to the Czech crown, Polish zloty and forint. Markets will turn to a Hungarian central bank meeting next week where policymakers may look at cutting its 18% one-day deposit rate that has helped pull the forint away from record lows above 430 per euro last year. Morgan Stanley said it had moved forward its expectations of a 100-basis point cut in the one-day deposit rate, although it saw "a non-negligible 40% subjective probability for the (central bank) to remain patient, in search for confirmation that the improvements in risk perceptions about the Hungarian economy are indeed persistent".