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Forint Reverses EU-Fund Inspired Gains

HUF
EURHUF has reversed its earlier losses on the EU-fund news with the cross now 0.25% in the green at typing. The forint had been among the top performing EM currencies today, but now its performance is more in-line with that of its CE3 peers. EURHUF dipped to as low as 385.83 – where the 50-DMA intersects – but price is back at ~390 where Monday’s session highs are found.
  • As a reminder, wires carried comments from Hungarian Regional Development Minister Tibor Navracsics regarding an earlier report from the FT that Brussels will soon release billions of euros in previously frozen funding. On this, Navracsics stated that the gov't is 'still waiting' for the Commission to confirm the reports and said that Hungary has 'been ready for deal with the EU since July'.
  • Technically, the outlook in EURHUF remains bullish with the 50-day EMA still intact - for now. A breach of this level – found at 385.02 – would be a bearish development and expose 378.24, the Aug 30 low. For bulls, key resistance is at 394.67, the Aug 3 high and a key resistance.

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