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EUR/HUF Stumbles at 61.8% Fib, Disinflationary Pressures to Support Inflows

HUNGARY
  • Local rates notch higher after dipping to a daily low post US ISM data.
  • Curve bull steepening in early trading (20Y +6.1bp) after PPI came in below prior months at 5.5% YoY & flat MoM as deflationary pressures persist.
  • EUR/HUF continues to drift lower to test the 61.8% fib at 357.76, just below the 358 handle.
  • ~354-355 marks the start of the rally induced by NBP FX interventions, and with favourable risk sentiment and wider real yields spurred by disinflationary pressures
  • We may see more HUF inflows.
  • Sup1: 357.76, Sup2: 356.38.
  • Focus remains on US senate run-offs for global sentiment reflected in US treasury yields & USD
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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