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Forint Outperforms Regional Peers, PLNHUF Tests Support at 50-DMA

HUF
EURHUF is trading lower again Wednesday morning despite the sustained move higher in US yields and accompanying uptick in the USD index. While the HUF’s regional peers have also strengthened against the single currency, HUF is outperforming in the EMEA space. Notably, PLNHUF traded to as low as 87.11 earlier this morning – closely matching the 50-DMA and placing the cross as its lowest since Nov 30. A close below the aforementioned average would be the first since October 2023.
  • There are no obvious drivers behind forint strength, with the local currency continuing to exhibit resilience to the broader risk-off tone across global markets. Domestically, markets will be watching for further details regarding issuance of a new 12Y USD benchmark, which Bloomberg reported may be priced today.
  • In EURHUF, though technical conditions remain bullish, price sits below the 50-day EMA which intersects today at 381.67. A sustained break of the average could signal scope for a move lower toward key short-term support at 378.22, the Dec 14 low.

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