EURHUF Makes Slight Recovery as Markets Fade Tuesday CPI Move
EURHUF has partially recovered some of yesterday’s US CPI-inspired sell-off, up 0.10% on the day at around 376.40. Today's price action places the forint close to the bottom of the EMEA FX pile, though the currency is outperforming the Czech koruna (PLNHUF: +0.30%: CZKHUF: -0.05%).
- The fade off highs for the EUR is likely the primary catalyst behind the move, though concerns over winter energy security following a Bulgarian tax on Russian gas may be providing an addition headwind.
- EURHUF has now made a clear break of 378.24, the Aug 30 low, strengthening the bearish theme and opening 373.98, the 76.4% retracement of the Jun 12 - Aug 3 bull leg. Initial resistance remains some way off at 380.40 – the 20-day EMA.