The Gunners have lost back-to-back games following a shock defeat by Norwich City in the Premier League, before slumping to a 2-0 loss against Schalke at home on Wednesday.
Hughes admitted the Gunners have gone through a disappointing spell after initially impressing this term, but the Welshman is expecting Arsenal to be much improved against the Hoops this weekend.
“I’m not sure [if it is a good time to face Arsenal], said Hughes.
“They’re a very good team and they’ve had a couple of results which have knocked them back.
“It’s their home game and you would expect them to come out and put in a good performance after a step back from their high standards in recent games.
“We’ve have to be aware of that.”
Hughes’ men are still searching for their first league victory after a disappointing draw with Everton at Loftus Road on Sunday.
But the 48-year-old remains confident the Hoops can match Arsenal, pointing to their promising performances against Chelsea and Tottenham Hotspur earlier in the campaign.
“We’ll go there with belief we can compete against any team in the Premier League,” added Hughes.
“We’ve drawn with Chelsea and Everton, and ran Tottenham very close and acquitted ourselves reasonably well against Manchester City for long periods.
“We’ll try and cause an upset because not many people expect us to get a result.”
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