Rally in the CE3 currencies is consistent with latest data – Commerzbank

The CE3 currencies – Polish Zloty, Czech Koruna and Hungarian Forint – have strengthened noticeably over the past month. Tatha Ghose, FX Analyst at Commerzbank, explains recent currency strength? 

Tentative signs that inflation may be peaking in the region

“There are some tentative signs that inflation may be peaking in the region. The signs go beyond obvious year-on-year base effect or energy price swings: the month-on-month change of core HICP appears to have eased in the CE3. The slightly smoother 3m/3m rate of change shows the peak clearer.”

“It would be premature to celebrate yet, but the noticeable rally by the CE3 currencies – in particular, by the CZK and the HUF – is consistent with latest data.”