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EURHUF Trades Lower Having Retraced Post-NBH Losses Tuesday

HUNGARY
EUR/HUF (-0.70%) has extended lower after retracing post-NBH losses yesterday afternoon. While the NBH delivered an expected 100bps cut to the effective rate, bank communication signalled that market stability is necessary before easing any further, and that a gradual and cautious approach will continue to be adopted.
  • HUF performance today sees the currency sit at the top of the EM pile despite mixed performance in the EUR and a slight downward bias in regional equities. Notably, USD/HUF trades 0.85% lower amid broader greenback strength.
  • Despite recently trading through the 50-day EMA, the primary technical trend direction in EUR/HUF remains down. A breach of 368.05, the May 16 low, would confirm a resumption of the trend and open 366.41, the Mar 30 2022 low.

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