CEE FX: HUF, PLN Reach Weekly Highs Following US Data, CZK Lags

Reaction in CE3 FX to the US payrolls data has been limited overall. The greenback snapped lower in response to lower revisions but has since settled at around pre-data levels. Meanwhile, lower US yields and firmer equities will likely continue to provide stability to the broader emerging market complex.

• EURHUF and EURPLN are both moderately lower on the session and trading close to weekly lows, while CZK lags as the diverging stances between the hawkish NBH and NBP compared to the more dovish CNB continues to underpin koruna underperformance.
• But despite gains for the forint this week, bullish conditions remain with the latest pullback appearing corrective from a technical standpoint despite the breach of support at 392.61, the 50-day EMA. A clear break of this average is needed to undermine the bullish theme.
• On the other hand, the move lower for EURPLN this week has resulted in a test of initial support at 4.2791, a retracement level, with 4.2471, the May 28 low, eyed by bears next.