**BREAKING: CEE Currency Markets Hit by US-Iran Tensions, Forint Plunges**
Central and Eastern European currencies tumbled today as escalating US-Iran geopolitical tensions sparked a sharp risk-off move across the region. The Hungarian forint bore the brunt of the sell-off, with EUR/HUF spiking 1.2% as traders unwound long forint positions amid heightened uncertainty.
ING analyst Frantisek Taborsky notes the National Bank of Poland maintained its neutral policy stance despite elevated Middle East risks and domestic CPI forecasts running above target. The geopolitical headlines triggered broad selling across both CEE rates and foreign exchange markets, putting pressure on carry trade positions that had previously benefited from the region’s higher yields.
Polish and Hungarian assets remain particularly vulnerable as investors reassess risk exposure amid the volatile security environment. The move underscores how quickly CEE markets can reverse when global tensions flare, catching overleveraged positions off guard.
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FXnCO Insight
** Traders holding CEE long positions should tighten stop-losses and reduce leverage exposure until geopolitical clarity emerges from the Middle East situation.
Source: FXStreet