EURHUF Spikes Higher Amid Global Risk-Off Tone

EURHUF has spiked higher in recent trade, despite no obvious domestic driver. The cross rose to as high as 388.71, with gains this week now standing at 0.3%. The most recent downtick in both US equities and the EUR following the US data may be providing a headwind to the local currency, though most major indices are still in the green. As we noted earlier, risk surrounding further escalations in Israeli-Palenstian matters has been a prominent theme.

• Technical conditions in EURHUF are bullish with support at 385.67, the 50-day EMA, intact. A breach of this level would be a bearish development and expose 378.24, the Aug 30 low. For bulls, key resistance is at 394.67, the Aug 3 high.
• The local data docket is empty for the entirety of next week. Beyond this, the next NBH rate decision will begin to enter focus with sell-side undecided on the scale of rate cut at the meeting on Oct 24 (https://marketnews.com/nbh-sell-side-views-post-cpi).