EUR/HUF Pares Earlier Gains and Returns to Flat

EUR/HUF has pared gains from earlier in the session, piercing last week’s lows and printing a fresh cycle low of 367.59 in the process. The cross had seen some support at the beginning of the session after Economic Development Minister Marton Nagy suggested that Hungary may need to consider raising its inflation target, but upward momentum proved to be short-lived with the cross now back to almost flat.

• Technically, the outlook of EUR/HUF is unchanged and the trend condition remains bearish. A continued break of 368.05, the May 16 low and the bear trigger, would confirm a resumption of the downtrend and open 366.41, the Mar 30 2022 low and the 360.00 handle further out.
• The data docket is thin this week, with market participants looking ahead to next week’s NBH rate-setting meeting.