EUR/HUF Returns to Flat After Approaching Key Support Level

Despite an initial move lower of around 0.3% throughout the European session, EURHUF has had a solid bounce in recent trade, which brings the pair back to flat for the day. The lows of the day fell around 50pips shy of key support and the bear trigger at 367.59, the Jun 12 low.

• Current account data crossed this morning, showing the deficit narrowing again in 1Q. The NBH has pointed to a “trend like improvement” in the external balance in its most recent policy statement, and therefore this data will potentially support the projected easing cycle.
• The government also announced an extension of the cap on deposit interest rates for some investors by three months. The cap applies to financial institutions and retail bank clients who have commercial bank deposits exceeding HUF20m ($59,000) and was initially meant to expire this month.