Free Trial

10Y yield approaching 100D SMA support

HUNGARY
  • On Wednesday, economic data showed that Hungary May CPI came in slightly lower than expected at 5.1% (vs. 5.3% exp.), leading to more hawkish tone from NBH policymaker.
  • Deputy Governor Barnabas Virag once again confirmed yesterday that he sees the end of ultra-loose monetary policy due to sustained CPI risks and therefore thinks that the NBH needs to gradually normalise ST rates. Virag expects CPI to be higher than 4% this year (above the NBH upper tolerance band).
  • Governor György Matolcsy also mentioned that monetary tightening is necessary following CPI data.
  • In the past few months, we have seen that the spike in inflation has led to an in disagreements between NBH policymakers over the trajectory of rates in the coming months.
  • USDHUF has been moving sideways in the past two weeks, trading between 283 and 287; resistances to watch on the topside stand at 290 and 294 (50D SMA). On the downside, first support below 283 stands at 280.
  • Hungary 10Y yield is down sharply this morning, approaching its 100D SMA at 2.66%; next support stands at 2.60%. On the topside, first resistance stands at 2.82% (50D SMA), followed by 3%.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.