CEE FX: CE3 Currencies Lead Gains Across EM FX Following US Data

The kneejerk move lower in the dollar on the back of the US data has prompted a solid uptick for several emerging market currencies, namely close to 1% moves across CE3 FX against the greenback. Higher equities and commodity prices may also be contributing to this strength, with HUF, PLN and CZK among the top EM performers.

• The data has also reestablished USDZAR into negative territory on the session. The pair has breached initial support at 18.4946, the Jun 3 low, a clear break of which could highlight potential for a possible short-term bearish reversal.
• EURHUF, EURPLN and EURCZK are each trading at session lows, though all three remain higher on the week overall after political turmoil across Europe and the associated uncertainty over the path of monetary policy weighed on sentiment in eastern Europe earlier in the week.
• For EURHUF, key short-term support has been defined at 388.62. Meanwhile, a break through support at 4.2727, the Jun 6 low, is required to reinstate a bearish theme for EURPLN.