CEE FX: Sustained Dollar Strength Weighs Further on HUF, PLN Sentiment

Sustained strength in the greenback has kept the pressure on EM FX, with the downtrend for most major emerging market currencies uninterrupted amid a wider risk off tone across global markets. HUF and PLN are among the poorest performing currencies in the EMEA region, with both registering substantial losses against the dollar on the session.

• USDHUF briefly reached its highest level since October earlier in the session, extending the bounce off Wednesday’s low to 2.5%. 375.80, the Sep 2023 high, marks the next resistance level to watch. A break here would place it at its highest in 15 months.
• USDPLN has broken above the 200-DMA for the first time since April and trades just over 1% higher at typing, with the Apr 16 high of 4.1230 eyed next. A break here would place the pair at a 7-month high.
• Nevertheless, the zloty is moderately outperforming the forint, with PLNHUF 0.3% lower today. The cross has once again tested support at the 100-DMA, a level we have not closed below since November, but is slightly higher on the week overall.