Goldman Sachs recommends shorting euro against forint on euro adoption prospects

Goldman Sachs is advising clients to short the euro versus the Hungarian forint, revising its EUR/HUF forecasts sharply lower and initiating a trade recommendation that targets further forint strength. The bank cut its EUR/HUF forecasts to 355, 350 and 345 at 3, 6 and 12 months (from 390, 380 and 375), and set a short trade with a target of 350 and a stop at 372. The forint was trading around 361, and Goldman notes a roughly 10% move from Thursday’s close would align the forint with regional peers (Polish zloty, Czech koruna). The call signals Goldman’s bearish institutional outlook on the euro in this regional context and could prompt flows into the forint or put downward pressure on euro crosses linked to central/eastern European currencies.