MNI China Daily Summary: Wednesday, July 10

MNI BRIEF: China To Investigate EU Trade Actions

MNI BRIEF: China June CPI Hits Three Month Low

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

MNI: US MBA: MARKET COMPOSITE -0.2% SA THRU JUL 05 WK

US MBA: REFIS -2% SA; PURCH INDEX +1% SA THRU JULY 5 WK

Indeed Wages Tick Higher, But Future Revisions Are Likely

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Forint Underperforms as DXY Uptick Provides EMFX Headwind

HUF
The forint is the weakest currency in EMEA following the NBH rate decision, with EURHUF set to break its streak of six consecutive closes lower. The 75bps cut was larger than BBG consensus for 50bps, though matched the median view of the surveys we had previewed. EURHUF had traded to as low as 380.73 at the start of the session – briefly piercing the 200-DMA.
  • The USD index fully paring yesterday’s gains and an increase in long-end US tsy yields since the start of the session have weighed on wider EM FX, though forint underperformance stems from the greater-than-expected 75bp rate cut by the NBH and concerns that Hungary’s favourable rate differential will be further eroded into year-end.
  • From a technical standpoint, the clear break in EURHUF below the 50-day EMA last week was a bearish development and exposes 378.24, the Aug 30 low. A move back above that average – which intersects today at 385.11 – would instead be bullish and signal scope for a resumption of the uptrend toward 389.20, the Oct 9 high.
  • The Budapest Stock index is also underperforming its regional counterparts, closing 0.56% lower on the day. Meanwhile, yields on HGBs are 9-16bps lower across the curve, matching similar moves in POLGBs and CZGBs.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.