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EURHUF Pares Earlier Gains Though Forint Mixed Among EM Peers

HUF
EURHUF has pared gains from earlier in the session and now trades 0.10% lower after recording a fresh cycle high yesterday. Nevertheless, HUF still performs mixed among its CE3 peers (PLNHUF: -0.01%; CZKHUF: +0.10%). Broadly, sell-side desks have been undecided over the trigger of this week's HUF weakness.
  • ING flagged the local weakness as a spillover effect of EUR/USD, meaning they cannot expect a big HUF reversal absent a significant recovery in the EUR.
  • Earlier in the week, JPM said they see little as having changed fundamentally outside of evidence of CTA selling the currency though highlight further negative headlines regarding the US restricting visa free travel for citizens.
  • Citi said yesterday they believe HUF positioning and steady outflows following the NBH decision last week seem to be the dominant drivers.

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