CEE FX: Subdued Reaction to US CPI; PLN, HUF Underperform

Reaction in CE3 FX to the US CPI data has been subdued, with the data coming in broadly in-line with expectations. Equities spiked higher in the immediate aftermath of the release but gains have mostly been pared. Similarly, the greenback sits close to pre-data levels at typing (see more in 13:37 BST bullet). For CE3 FX, only minor blips for EURHUF, EURPLN and EURCZK were recorded, with the Hungarian forint and Polish zloty still underperforming compared to their EMEA peers. Full technical updates below.

• EURHUF is operating above the 50-day EMA following the reversal higher for the cross this morning. That average has been pierced earlier in the week but a clear and sustained break is needed to signal scope for a deeper retracement towards 388.82, the Jul 22 low.
• EURPLN has pierced below both the 20- and 50-day EMAs yesterday, and remains below both again today. A clear break of these averages would undermine the recent bullish theme and could expose the Jul 26 low of 4.2671.
• EURCZK ranges are narrow today with price contained well within this week’s extremes. At typing, the cross is operating near the 50-day EMA at 25.18 – an average we have not closed below since late June.