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Forint Extends Gains, Tops EMEA Pile

HUF
  • The forint has extended its earlier gains putting EURHUF back to late-July levels below the 379.00 handle. The cross is down 0.55% on the day, placing the forint at the top of the EMEA FX pile despite little change to global risk sentiment. 376.78, the July 25 low, marks the next support level to watch with the 50-day EMA having been cleared.
  • The currency is potentially being supported by yesterday's hawkish comments from Virag, who said market pricing of rate cuts beyond September is "excessive" and that decisions will be made in a data-dependent manner.
  • NBH comments come alongside further easing in medium-term policy pricing, evident in the persistent pullback in HUF FRAs. The 6x9 HUF FRA fell below 10 points in mid-August and has touched 9.35 today, the lowest since mid-June.

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