Goldman Sachs strategist Teresa Alves advises traders to short the euro against the Hungarian forint, driven by discussions among Hungary’s new leaders on potential eurozone membership following recent elections.

Updated EUR/HUF Forecasts

The firm has revised its EUR/HUF projections downward to 355 for three months, 350 for six months, and 345 for 12 months. These figures mark a notable shift from prior estimates of 390, 380, and 375.

New Short Trade Recommendation

Goldman Sachs has introduced a fresh trading strategy: short EUR/HUF with a target price of 350 and a stop-loss at 372. The forint hovered around 361 against the euro on Friday.

Alves highlights that a 10% gain from Thursday’s closing level would align the forint with its historical peak overvaluation, comparable to the average levels of regional currencies like the Polish zloty and Czech koruna.