06:54 AM EST, 11/28/2024 (MT Newswires) -- ING said it sees a very mixed picture in Central and Eastern European (CEE) foreign exchange.

While EUR/USD bounced up, CEE currencies weakened on Wednesday, wrote the bank in a note. Although EUR/PLN and EUR/CZK managed to somehow consolidate during the day EUR/HUF found new highs near 413.

The weakening Hungarian forint (HUF) has been a theme for the markets for a few weeks now and positioning is clearly short here, ING believes the rest of CEE should follow suit and the bigger question is why Poland's zloty (PLN) and the Czech Republic's koruna (CZK) are so resistant.

EUR/USD is down 5% since early October and HUF has lost roughly the same against the euro (EUR), pointed out the bank. On the other hand, PLN and CZK have only lost 0.7% and 0.9% since then.

As a consequence, ING believes the problem is on the PLN and CZK side rather than with the HUF. The local story isn't supportive in Hungary for foreign exchange, but the bank thinks the rest of the region will sooner or later follow the HUF depreciation in response to the United States election and the new environment for CEE in foreign exchange.