Goldman Sachs and Citigroup have issued bearish assessments of the Hungarian economy, signaling significant headwinds for local currency and sovereign debt markets.
Goldman Sachs now projects that a realistic timeline for Hungary to adopt the euro extends beyond 2031, effectively ruling out near-term convergence.
Simultaneously, Citigroup has advised investors to sell Hungarian government bonds, reflecting deepening concerns over the country's fiscal trajectory and market access.
The dual downgrade from Wall Street giants arrives as the Hungarian forint faces renewed selling pressure.
The currency had previously benefited from a broader market rally driven by easing geopolitical tensions in the Middle East and declining oil prices, which saw the euro dip below 350 forints earlier in the week.
However, that momentum has stalled as global investors pivot toward caution ahead of critical US economic data releases, leaving the forint vulnerable to negative sentiment.