EURHUF Reverses Earlier Gains, Forint Tops EMEA Pile

EURHUF has completely reversed its earlier gains, with the cross now 0.15% in the red at typing. A similar reversal of losses is noted across most emerging market currencies, coinciding with US10y yields rolling off the cycle high, though the forint has swung from being the poorest EMEA FX currency on the day to among the strongest. The cross, nevertheless, remains some way off initial support at 385.18, the 50-day EMA.

• The Budapest Stock Index last deals ~0.3% softer on the day, closely matching that of its regional counterparts. Yields on HGBs are 9-11bps higher across the curve, slightly outpacing gains in Czech and Polish government bond yields.
• Looking ahead, further developments regarding frozen EU funds will be monitored by markets after latest reports suggested that the EU could unlock part of the Cohesion Funds by the end of November. HUF will also remain sensitive to global developments with the recent surge in US yields a headwind to EM FX.