EUR/HUF Pierces Resistance at 50-Day EMA

EUR/HUF (+0.70%) has extended higher Thursday, piercing the 50-day EMA which intersects today at 373.41. The cross trades shy of the 374.00 handle at the time of typing, putting HUF comfortably at the bottom of the EM pile. A move higher would expose 380.29 further out, the Apr 20 high and a key resistance.

• The ECB rate decision takes focus ahead of the NBH meeting next week, where further easing of the 17% effective rate is expected. Despite narrowing rate differentials, sell-side desks have previously noted that the rally in HUF may still have some room left to run as the HUF carry profile remains relatively attractive, for now. As such, sell-side more broadly continue to view near-term HUF weakness as corrective in nature.