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Forint Firms Alongside Emerging Market Peers

HUF
  • EURHUF is down 0.20% at typing, broadly in-line with the performance of its CE3 peers (EURPLN: -0.20%; EURCZK: -0.10%). While there is little in the way of domestic news flow, stronger global equity indicies and softer core yields are providing support to wider EM FX.
  • Previously noted EURHUF technical levels remain in play with the 50-day EMA marking the next important support level at 381.11, while a resumption of gains would refocus attention on 394.67, the Aug 3 high.
  • Hungary’s local yield curve trades 2-5bps lower and flatter today, matching that of its regional peers. The Budapest Stock index trades 0.25% in the green and has recorded a fresh record high in the process, taking YTD gains close to 30%.

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