HALISTER1: Zloty, Koruna Cheap Versus Euro; HUF Fairly Priced, ING Says

Zloty, Koruna Cheap Versus Euro; HUF Fairly Priced, ING Says

(Bloomberg) -- Poland’s zloty, Hungary’s forint and the Czech koruna are undervalued against the dollar, and offer attractive medium-term opportunities, ING chief EMEA strategist Petr Krpata says in note.
  • According to ING, zloty’s cheapness has reached “historically stretched levels”
  • See “dislocation” in short-maturity Czech local-currency bonds vanishing “relatively quickly” as central bank nears end to koruna cap in 2Q
  • Short-term Hungarian forint bonds may remain overvalued “for a little longer” as central bank in Budapest “unlikely to change its unorthodox easing bias”
  • Polish government bonds to remain “fundamentally cheap” with little room for further declines, few catalysts for risk premium being priced out
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Petr Krpata (ING Groep NV)

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