Forint Lags Other CE3 Currencies Amid Wider Flight To Safety

The Hungarian Forint underperforms all currencies from the EMEA basket, proving most vulnerable to the fallout from the SVB collapse which sent participants seek safety. Risk aversion has applied pressure to the wider CEE space, driving losses in HUF, CZK and PLN.

• PLN/HUF has surged ~2.2% so far, punching through its 50-DMA and Feb 6 high of HUF83.43 to last trade at HUF83.65. Topside focus now falls on HUF84.48, which capped gains on Jan 24.
• CZK/HUF has moved through its 50-DMA, 200-DMA and 100-DMA (in that order) on its ~2.1% upswing today and last sits at HUF16.5391. The rate has struggled to make any headway beyond the 38.2% retracement of the Oct 13 - Mar 6 sell-off.
• Price action has been quieter in PLN/CZK, which has edged higher nonetheless, printing its best levels since Feb 3. The RSI is yet to enter overbought territory, which suggests that there is room for further gains.