Forint Remains Among Top EMEA Performance Amid Slightly Firmer Single Currency
The forint remains among the top performers in the EMEA space as we approach the end of European trade. EURHUF is around 0.15% in the red at typing and within relatively close proximity to multi-month lows printed earlier in the session. The local currency has been resilient to the recovery off post-NFP lows in UST yields, with a slightly firmer single currency and major equity benchmarks likely the key drivers behind HUF strength.
- As previously mentioned, immediate support is marked at 378.24, the Aug 30 low. While this level has been recently pierced, a more sustained break would signal scope for a move lower toward 376.78, the Jul 25 low, as well as 373.98, the 76.4% retracement of the Jun 12 - Aug 3 bull leg.
- Yields on HGBs are following the direction of core FI, though are down 16-20bps across the curve – more than in Hungary’s regional peers’ counterparts. The Budapest Stock index, on the other hand, firmed just 0.11% on Monday, lagging major benchmarks.
- Looking ahead, industrial production, retail sales, trade balance and CPI data are all scheduled for release later in the week.