Forint Softens Alongside EM Peers

EURHUF extended higher this morning to just shy of the 384.00 handle before partially paring some of its gains. The cross has since returned to the 383.00 handle, despite no obvious domestic catalysts driving the moves in either direction. Though the dollar index is close to flat on the day, most major EMEA currencies trade in the red against the greenback with the forint in the middle of the pile (EURPLN: +0.12%; EURCZK: +0.22%).

• Previous technical levels remain in play with the 50-day EMA marking the next important support level at 381.27, 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 remains just shy of the 50-day EMA – a level which was pierced earlier this week.
• There are no data releases left on the docket today. With HUF performance largely a function of the global picture, markets will look ahead to speeches at the Jackson Hole symposium. Potentially of note will be any developments in Australia LNG plant strike action and subsequent price action in European natural gas.