Free Trial

CEE Central Banks Not Looking to Follow NBP

CEE FX
  • PLN & HUF sell off against the EUR this morning following Friday's PLN sales by the NBP.
  • While most expect the NBP to continue selling PLN, the effects on HUF are expected to be short-term
  • NBH has been vocal in support of a stronger HUF to offset inflation concerns and is unlikely to follow the NBP (along with the rest of CEE).
  • General risk off and low liquidity has accentuated weakness against the EUR, but we may see interest in EUR/HUF shorts re-emerge at higher levels on a normalisation in global risk sentiment.
  • EUR/PLN topside resistance at 4.5317 (50.0% retracement of the Oct 29 - Dec 9 sell-off), 61.8% level is further away at 4.5586.
  • EUR/HUF holding marginally above 50dma at 360.40, resistance at 631.58 - 362.64 zone.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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.