September 13, 2023 13:18 GMT
EURHUF Close to Tuesday’s Lows Amid Wider CEE Outperformance
- EURHUF is trading close to Tuesday’s lows of 383.42 in the aftermath of the US inflation report, with CEE currencies at the top of the EMEA pile as the greenback reverses its initial spike higher and yields on US Tsys reverse lower.
- Earlier in the session, both EURHUF and EURCZK dipped with EURPLN after a Polish official said that the government has tools to bolster the zloty. With little in the way of domestic catalysts, HUF sensitivity to developments in its regional peers has been increasing. Some analysts had attributed the strength in HUF last week to PLN weakness, as investors may be taking positions in PLN via the PLNHUF cross (click here to see more). However, this week’s moves in PLNHUF have been more muted, with the two currencies largely seen moving in parallel.
- Elsewhere, NBH minutes offered little new information and did not alter the EURHUF needle, with one more 100bp cut to the effective rate at the next rate setting meeting all but a foregone conclusion. There are no more releases left on the docket for the remainder of the week.