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EURHUF Settles Around 383 Level

HUF
EURHUF has pared the majority of yesterday's gains and has settled around the 383 mark. The forint has strengthened alongside the majority of its emerging market peers, with the currency sat in the middle of the EMEA FX pile at typing. Overall, the cross sits just 0.25% higher on the week as we approach the NBH meeting on Tuesday. Recent FX weakness will likely do little to deter the central bank from normalising policy rates by the end of September. Ahead of this, Fed Chair Powell’s keynote speech in the afternoon is the key risk event across global markets.
  • Technically, EURHUF is consolidating though trend conditions are still considered bullish with the recent pullback that started Aug 3 deemed corrective. The 50-day EMA represents the next important support and intersects at 381.36. A resumption of gains would refocus attention on 394.67, the Aug 3 high, a clearance of which would resume the uptrend.

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