HUF: Forint Firms Alongside EM Peers Following Powell Comments

EURHUF (-0.25%) has extended the pullback from the week’s earlier high as the forint firms alongside its EM peers following comments from Fed Chair Jerome Powell yesterday evening. Powell said policymakers could move cautiously as they continue to cut interest rates, leading to broad-based gains across the Asia FX space overnight with EMEA currencies following at the start of the European session. For EURHUF, today’s losses narrow the gap to initial support at 410.75, the 20-day EMA. Topside focus remains on 415.92, the Dec 13 2022 high.

• A Politico piece published this morning – which stated that unless Hungary can carry out 17 measures and gain the Commission's approval by Dec 31, around EUR 1bn in EU cash will be gone for good – has had little bearing on HUF. Meanwhile, retail sales rose 3.6% y/y in October, above expectations, while the trade surplus widened to EUR 965m. Both did little to move the needle as well.