|Member Sentiment Neutral|
Live and Historical EUR/HUF Rates
The following chart shows the value of the euro (EUR) against the value of the Hungarian forint (HUF) or how many HUF can buy one EUR. EUR is a major currency, but HUF is not. Together, the euro against the Hungarian forint forms neither a major pair nor a commodity pair.
The euro is the currency of over twenty-one European nations, but many questions surround the euro's success in the world market. First, it has not been adopted by all the major European trading countries, not least of which are Switzerland and the United Kingdom. Second, several EU members have faced weakened economies which affect the euro's value. Last and perhaps most importantly, it seems that a shared currency necessitates strong mutual fiscal control, and the outcome of this experiment is unclear. Finance, services, agriculture, and tourism are among the major Eurozone industries and are very influential on the strength of the euro.
The Hungarian Forint
The Hungarian forint debuted in 1946. HUF is the only remaining currency circulating in today's world market that was formerly associated with a socialist state. HUF was pegged to EUR until 2008 though now it seems the world market is waiting for the total revocation of HUF. When this change comes, it will make Hungary one of the final EU countries to convert to the euro. When purchasing with cash in Hungary, the practice is to round to the nearest multiple of five. This practice allowed the Hungarian government to eliminate the one and two coins without significantly changing the pricing.
The trade relationship between Hungary and the Eurozone is very strong, and there is a strong resulting correlation between the two. One of the influences on this pair is the price of basic commodity products, such as heavy metals and building materials. Naturally, current events in the fortunes of the Eurozone nations also has a significant influence. But the strongest factor is certainly the political prospect of Hungary adopting the euro. If the government of Hungary is able to move towards this goal within several years (as they hope), the market will begin to price in the change ahead of time.
October 06, 2010 at 2:52 PM • Comment
Another strange day in which we saw gold, currencies, stocks and CDS rally in response to the expectations of another round of QE, although U.S. equities are a bit weak as this is being written. Admittedly, it looks...Read More
October 06, 2010 at 11:13 AM • Comment
The U.S. dollar gained against all major currencies on Monday, but its strength proved to be short-lived as investors pushed the euro to fresh 10 month HI's on Tuesday. The euro actually reached a HI of 1.3858, which is...Read More
October 05, 2010 at 12:11 PM • Comment
Last week saw the price of gold make several new all time highs as it jumped over the psychological $1,300 per ounce level. The price then continued rising to make yet another new all time high of $1,320.49...Read More
October 05, 2010 at 12:08 PM • Comment
The U.S. Dollar continued its decline against all the major currencies last week, extending its previous week's substantial losses. The U.S. Dollar Index lost -1.31 points last week to close at 78.09, showing a net loss of...Read More
October 05, 2010 at 11:47 AM • Comment
EURUSD substantially extended the gains it made the preceding week during last week's trading sessions, as the Greenback continued falling versus all of the other major currencies for the second week in a row. The pair started the week...Read More