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EUR/HUF Narrows in on YTD Lows

HUNGARY
  • EURHUF fast approaching the YTD lows at 384.21, a break below which will put the cross at the lowest levels since May last year.
  • Local yields are creeping higher, with 10y clearing the late January highs to touch best levels since January 6th. Move is mimicked in short-term rates, with the 3m Bubor fix ticking higher to 16.12%, just below the January high 16.21%.
  • Moves follow a somewhat hawkish interview from NBH deputy governor Virag, who wrote that Hungary’s inflation warrants “patience” when it comes to the timing of the first rate cuts, the first of which “is not on the horizon”.
  • Risk events few and far between Monday, with focus on tomorrow's Prelim Q4 GDP prin as well as Orban's state of the nation address on Saturday.

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