Forint Extends Recovery From Last Week’s Lows
The forint has extended its recovery from lows printed against both the euro and dollar last week. EURHUF last deals around the 385.00 level and within close proximity of initial support at 384.42 – the 20-day EMA. A continued move lower could expose the short-term bear trigger at 378.24, a break of which would resume bearish activity. Meanwhile, USDHUF has traded lower for the third consecutive session having printed a near 6-month high on Thursday.
- There is little in the way of notable domestic catalysts, though a softer greenback and strength across major global equity indices is supporting wider EM FX. HUF sits toward the top of the EMEA pile and outperforms its CE3 peers. Notably, continued weakness in the Polish zloty following last week’s sell-off puts the PLNHUF cross at its lowest level since late June.
- With no data releases scheduled this week, HUF performance will likely continue to be a function of the global picture in the short-term.