EURHUF Extends Monday Losses

The forint is leading EMEA FX gains today as market concerns over US and European banks continue to subside. The forint was one of the hardest hit currencies last week, with the EURHUF cross erasing all of its YTD losses and rising to a high of 402.45 yesterday as investors sought a flight to quality.

• EURHUF now trades 2.77% below that high, with key support and bear trigger defined at 372.38, the Mar 1 low. Initial firm support is at 387.35, the 20-day EMA.
• USDHUF has declined an impressive 1.4% on the session and price is narrowing in on its 50-day simple moving average at 361.11.
• Prior to the SVB-led market panic, Deputy Governor Virag explained that the improvement in risk does not yet warrant a rate cut, and that the key rate would remain at an EU-high 13% “for some time”. The significant weakening of HUF will likely mean the NBH maintain their hawkish tone at next week’s central bank meeting.