EUR/HUF is a common currency pair in the forex market. The instrument proves to be vastly popular among savvy traders owing to its great stability and the predictability of the eurozone and the Hungarian economies.

At the same time, EUR/HUF is a cross currency pair against the US dollar. The pair does not contain USD, but its exchange rate is significantly affected by it. This tendency could be traced if we compare the EUR/USD and USD/HUF charts.

Main features

EUR/HUF is suitable for both novice and professional traders. It involves low risks. The pair’s exchange rate is influenced by the correlation between the eurozone economy and the Hungarian one. Although Hungary is part of the European Union, it has preserved its national currency – the forint. That is why the Hungarian currency often repeats the euro’s dynamics.

Hungary is heavily dependent on the organizations and countries that operate in its territory. Hungary enjoys a high share of foreign investments in its economy.

A large portion of Hungary's income comes from tourism. The country’s other well-developed economic sectors are mechanical engineering, metallurgy, chemical, and agriculture (products are mainly exported abroad). Hungary’s main trade partners are the EU countries and Russia. Therefore, when evaluating the forint’s exchange rate, the economic indicators of these regions should be taken into consideration.

Aspects of trading EUR/HUF

When trading cross currency pairs, traders should bear in mind that brokers set a higher spread for them than for major currency pairs. For that reason, before working with cross currency pairs, it is important to explore the broker’s trading conditions for a specific instrument.

EUR/HUF is usually heavily traded in the European session and is coolly traded the rest of the time.

Above all else, the US dollar has a significant impact on both the euro and the Hungarian forint. That is why traders should focus on the main US economic indicators when making forecasts for EUR/HUF (interest rates, GDP, unemployment, Nonfarm Payrolls, etc.).