Forint Pressured by European PMI Data, EUR Downtick

EURHUF trades 0.10% in the green at typing and within close proximity of yesterday’s highs. The forint has been pressured, alongside its CE3 peers, following the weak services PMIs in Germany and France which has stoked fears of stagflation in Europe. The accompanying downtick in the euro has provided an additional headwind to the euro proxies, all of which sit at the bottom of the EMEA pile.

• Previous technical levels remain in play with the 50-day EMA marking the next important support level at 381.23, while a resumption of gains would refocus attention on 394.67, the Aug 3 high. PLNHUF and CZKHUF are close to flat on the day. Both are trading close to August’s lows while the latter is sitting below the 50-day EMA – a level which was pierced earlier this week.