July 22, 2022 07:28 GMT
- EURHUF has been testing its 50DMA (396.90) this week after consolidating sharply the previous week following the NBH decision to readjust its 1W depo and base rates by 200bps (9.75%) to protect the domestic currency.
- We have seen that the forint has been extremely sensitive to the Russia/Ukraine dynamics, and NBH policymakers have been determined to support the HUF to keep inflation expectations ‘anchored’.
- Support to watch below 396.90 stands at 393.20, followed by 390.
- On the topside, resistance to watch stands at 400, followed by 407.
- Yesterday, the NBH decided to keep its 1W depo rate steady at 9.75% as expected.