EURHUF Trades Close to 389.00, PLNHUF Reapproaches 90.00

Muted price action across G10 FX owing to the US holiday is likely accounting for the lacklustre moves in CEE FX. EURHUF has traded on either side of 389.00 since the start of European trade, with little in the way of domestic drivers to provide any meaningful momentum. The Polish zloty is outperforming at the margins, placing PLNHUF 0.1% in the green at typing and closer to the 90.00 handle which was briefly pierced last week.

• Given the limited moves in EURHUF, a familiar technical picture remains in play. Resistance to watch is found at 390.49, the Jan 30 high. A clearance this level could signal scope for an extension higher toward 394.67, the Aug 03 2023 high. On the downside, a break of the 50-day EMA at 384.39 is required to instead reinstate a bearish theme.
• Looking ahead, average gross wage data (Est: +13.8% y/y; Prior: +13.9%) and unemployment rate figures (Est: 4.3%; Prior: 4.2%) are the highlights on the local slate later in the week.