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CEE FX Feels the Pinch as NBP Sells PLN Again

CEE FX
  • EUR/PLN opens lower towards the 38.2% mark of yesterday's intervention-fuelled push higher to peak at 4.5702.
  • Although the NBP is yet to confirm PLN sales were the cause, the price action was virtually identical to 18 Dec and unlikely to be a local factor spurred on by thin markets.
  • It seems the NBP will look to defend the currency below 4.48 to keep above the 4.50 handle.
  • 50% fib at 4.5237, 61.8% & 22-25 Dec support at 4.5127.
  • EUR/HUF continues to drift higher, driven by NBP FX sales volatility and low volumes.
  • 1w deposit rate should remain at 0.75%, given HUF volatility.
  • RES1: 365.19, RES2: 365.84-366.25 band (Sep 24-30 & Oct 20 highs).
  • SUP1: 363.18, SUP2: 362.43. EUR/USD rejects 1.23, pulling back towards 1.2250 support.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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