Forint Little Changed Following Powell Comments, Outperforms Regional Peers

EURHUF is little changed overall following the Powell comments, despite the uptick in the greenback and US tsy yields pressuring wider EM FX. The forint therefore outperforms the majority of EMEA currencies, sitting second only to the South African rand at the top of the pile.

• The 50-day EMA around the 381.30 region has provided support to the cross this week, containing EURHUF price action to a relatively narrow range compared to previous weeks.
• Yields on HGBs are slightly lower across the curve compared to higher yields seen in core FI and in Hungary’s regional peers. 3Y bond yields are close to their recent cycle lows while 10Ys last deal around levels not seen since July.