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Downside Momentum in EURHUF Fades

HUF
EURHUF is trading 0.25% in the green at typing, though had traded just below 383.00 earlier in the session. The recent release of Eurozone inflation data has done little to move the needle, with the EUCO summit the key risk event for Hungary today (preview from our Political Risk team can be found here). For EURHUF, a break of the 50-day EMA at 382.39 is needed to strengthen the bearish theme.
  • Despite HUF recording a notable bounce since the smaller-than-expected rate cut on Tuesday, views on HUF performance relative to its regional peers have been divergent. JP Morgan stay long on PLNHUF, whereas HSBC enter a short position given HUF’s balance of payments dynamics and positive real rate buffer. See more here.

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