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EURHUF Pares Earlier Gains, Pierces 390 Handle

HUF
  • EURHUF has pared all of its earlier gains in recent trade, piercing the 390.00 handle and placing the forint at the top of the EMEA FX pile so far today. The cross had been trading within close proximity of yesterday’s highs in the 391.70 region prior to the move.
  • A reminder that a sustained break of resistance at 391.64, the Aug 21 high, is needed to open 394.67, the Aug 3 high and a key resistance. Support is found at 383.75 – the 50-day EMA.
  • Attention will turn to the NBH decision in the afternoon. While a 100bp cut to the one-day deposit rate to complete rate convergence is all but confirmed, market participants will be looking out for any hints from policymakers over the pace of potential easing moving forward.

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