Morning headache

Slovakia has revalued its currency by 8.5% within the ERM system over the weekend, sending all Eastern European currencies, including Macro Man's HUF short, screaming higher. Ugh.

The market's reaction seems somewhat exaggerated in other central Europeans; Macro Man views a similar shift in the HUF ERM parity as unlikely.

As such, he buys another 10 EUR/HUF at 244.80 spot basis, 245.21 to 04 April.

UPDATE: Moody's has apparently released a report saying that while Eastern Europe is not like Asia in 1997, "inflammability" is rising. It can't come soon enough!
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