Forint Marginally Outperforms Regional Peers Despite Few Local Drivers

EURHUF has respected yesterday’s ranges, last dealing around 382.40, with the forint marginally outperforming its CE3 peers (PLNHUF: -0.23%; CZKHUF: -0.10%) as an uptick in the euro supports CEE FX. A break of previously noted support at 380.73, the Oct 24 low, would reinstate a bearish theme in EURHUF and open 378.24, the Aug 30 low.

• With little in the way of domestic data or news flow this week, attention has turned to global risk events i.e., Fed and BoJ decisions. Pressure on the Japanese yen today after the BoJ disappointed markets with no formal tweak to YCC has seen HUFJPY rise ~1.5%, taking the cross to its highest level since Aug 31.
• Meanwhile, USDHUF is down 0.69% at typing. An extension lower toward 356.44 – last week’s low and a level which closely matched the mid-September lows – would signal a bearish development with the pair having breached back below the 50-day EMA yesterday.