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EURHUF Approaches Monday’s Highs as Bullish Theme Develops

HUF

EURHUF gains have accelerated in recent trade, with the cross now approaching Monday’s highs at 385.77. A break above here would place EURHUF at its highest since Oct 26 and strengthen the developing bullish theme, potentially opening 386.29, the Oct 25 high, and 389.20, the Oct 9 high. Similar gains in EURPLN this morning preceded a swift reversal, though EURHUF has held onto its gains so far.

  • There have been few obvious catalysts behind HUF weakness today, though continued pushback from Fed and ECB officials over market pricing of 2024 rate cuts has been weighing on CE3 FX.
  • Domestically, news flow has been light with local press focussing on yesterday’s 75bp rate cut by the NBH. Both the decision itself and press conference offered few new clues over the 2024 rate path, with the central bank maintaining its cautious approach. Our review of the decision, with sell-side analyst views, will be released later today.

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