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BUX Index Continues To Reach New Record Highs Amid Strong HUF

HUNGARY
  • Momentum on HUF remains firm in September amid hawkish NBH; the forint is up nearly 1% against the USD since the start of the month.
  • Hence, the HUF strength keeps pushing Hungarian equities to new highs, with the BUX index currently trading at a record high and gradually approaching the 53,000 level.
  • This morning, economic data showed that Industrial production rose by 10.2% YoY in July (vs. 11.5% exp.), down from 18.6% the previous month.
  • Next key data to watch is August CPI inflation on September 8, which is expected to accelerate to 4.7% YoY (from 4.6% the previous month).
  • USDHUF has been retracing slightly higher this week after finding a local low at 292 on Friday; ST resistance to watch on the topside stands at 296 (100DMA), followed by 297.50 (200DMA). On the downside, first support to watch stands at 290.
  • Hungary 10Y yield has been trading sideways in the past few days, oscillating at around 3.02% after retracing higher since the middle of August. Key resistance to watch on the topside remains at 3.22%; on the downside, first support stands at 2.92%, followed by 2.84% (50D and 100DMA).

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