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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
HUNGARY
- Selling pressure on HUF remains elevated despite the NBH aggressive hike last week; as a reminder, the central bank surprised the market by delivering a 185bps hike in its base rate, levitating the policy rate to 7.75%.
- EURHUF is trading back above the 400 psychological level this morning, therefore putting NBH policymakers in a difficult position as a depreciating forint keeps de-anchoring inflation expectations.
- We previously mentioned that the forint is driven by external factors (geopolitical uncertainty), hence hiking rates too aggressively may have limited impact on the currency but could accelerate the economic downturn.
- Next resistance to watch on the topside stands at 404.80 (pair’s all time high).
- Key level to watch above that stands at 410.79, which corresponds to the 123.6% Fibo projection of the 352.40 – 399.60.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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