EURHUF Close to Unchanged Amid Few Domestic Developments

EURHUF sits 0.10% in the red with very little in the way of domestic drivers or developments in global risk sentiment. The cross declined ~1.8% from last week’s highs in the three sessions prior, with price action today notably more muted. Nevertheless, trend conditions remain technically bullish with the recent pullback that started Aug 03 deemed corrective. The move lower has allowed an overbought trend condition to unwind with the 50-day EMA at 380.99 the next important support level to watch. On the upside, a resumption of gains would refocus attention on 394.67, the Aug 3 high.

• Broader market conditions are generally favourable to the forint. Major equity indices sit higher on the day while the dollar is marginally lower. On the other hand, higher US Tsy yields may provide a headwind to HUF gains.
• Yields on HGBs are little changed across the curve though Budapest Stock Index trades 0.90% in the green – outperforming the counterparts of its CE3 peers.
• Looking ahead this week, average wage (Est: +17.6% y/y; Prior: +18.2%) and unemployment rate data (Est: 3.8%; Prior: 3.8%) are the highlights on the docket.