April 25, 2024 08:42 GMT
Forint Gains as Pressure on Greenback Supports EM FX; HUF/JPY at Multi-Month Highs
HUF
- Moderate pressure on the greenback at the start of the session has provided support to EM FX, seeing EURHUF trade close to yesterday’s lows at typing, around 392.75. But despite today’s pullback, the cross remains contained within this week’s extremes, and still some way above support at 388.34, the Apr 5 low. A break of this level is required to reinstate a bearish theme.
- Among its EMEA peers, only the Polish zloty and South African rand outperform the forint. PLNHUF stands 0.1% in the green, but still below the 50-DMA at 91.29. While that average provided firm support on a number of occasions this year, we have traded either side of it over the past week.
- Meanwhile, sustained pressure on the Japanese yen has resulted in HUFJPY piercing above the early-April/mid-January highs at around 42.46, placing the cross at its highest level since December. Continued topside pressure could expose 42.86, the 76.4% retracement level of the November 2023 downleg, ahead of 43.12, the late November highs.
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