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EURHUF Trades Firm Today Following Orban Comments

HUNGARY
EURHUF (+0.26%) trades firmer today, though within yesterday’s ranges, following Orban's speech on the economy. Orban's comments that the government is in talks with the NBH to align fiscal and monetary policy has unsettled market concerns of risks to CB independence after the Governor spoke yesterday against increasing political pressure to cut rates, stating economic policy "took a wrong turn" in 2021.
  • This has been compounded by the Fed and ECB rate re-pricing this week, providing a headwind to CEE FX, though HUF notably underperforms, putting it at the bottom of the leaderboard.
  • Trend conditions remain bearish, with the cross retracing yesterday's gains and today's recovery likely corrective in nature. The focus is on 370.82, the 1.382 projection of the Oct 13 - Nov 10 - Dec 12 price swing. To the upside, the 20-day EMA has been pierced, with the next resistance at 387.31, the 50-day EMA.

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