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Forint Firms as Local Equity Benchmark Records Fresh All-Time High

HUF
The forint performs as one of the strongest EMEA currencies so far today and is second to only the Czech koruna in the space. EURHUF sits 0.15% lower at typing, though remains above lows seen printed following the ECB decision yesterday. Similarly, USDHUF sits ~0.40% lower and has partially pared some of Thursday's gains.
  • ECB officials have sent mixed messages in comments this morning, though some members have suggested that no further hikes will be needed. This has lent support to CEE currencies given their sensitivity to European rates and concerns over the potential erosion of favourable rate differentials.
  • Previously noted EURHUF technical levels remain in play: a sustained breach of the 50-day EMA at 382.63 is needed to expose 378.24, the Aug 30 low and key support.
  • Local equities trade firmer again today, in tandem with European stocks, with the Budapest Stock Index seen printing a fresh all-time high.

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