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EURHUF Returns Back to Intraday Highs

HUF
  • Despite two-way price action through the majority of the US session, EURHUF continues to trade with an upward bias, approaching the intraday highs at around 379.90 in recent trade.
  • Additional upside momentum could expose 381.17, the 50-day EMA, a break of which is needed to signal a resumption of the bullish technical theme. The forint is performing in-line with the Polish zloty and the Czech koruna, all three of which are underperforming compared their EMEA peers.
  • CPI data is on the docket tomorrow morning (07:30GMT/08:30CET), where headline inflation is expected to fall 2ppts from +7.9% y/y in November to +5.9% in December.
  • Nevertheless, the NBH are likely to maintain the 75bp rate cut pace when they next meet on Jan 30, as per previously offered guidance from central bank officials that further easing will be gradual.

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