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EURHUF Keeps Trading Above 400 Level Despite NBH 'Hawkish' Hike

HUNGARY
  • EURHUF keeps trading above the 400 psychological level despite NBH decision to hike its policy rate by 100bps.
  • Even though the magnitude of the hike was higher than what markets have been pricing in recently (between 50 and 75bps), the forint continues to be driven by external factors such as political uncertainty.
  • Rising risk aversion and USD strength have been associated with HUF weakness, therefore the 'hawkish' move from the NBH has not generated any significant impact on the EURHUF pair.
  • Deputy Governor Virag will hold press conference at 3pm CET.

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