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Forint, Zloty Top EMEA Pile as Koruna Lags Following CNB

CEE FX
While greenback weakness and a recovery in equities is providing a tailwind to PLN and HUF, the CNB’s decision to cut its key rate 25bps to 6.75% has weighed on CZK, with EURCZK currently operating above Tuesday’s highs of ~24.58.
  • Notably, CZKHUF losses stand at 1% today, placing the cross back below the 50-day EMA. In EURCZK, the Oct 26, 2023/Jul 7, 2022 highs of 24.747/24.979 mark the next resistance levels to watch.
  • EURHUF is trading close to the day’s lows just below the 382.00 handle at typing, down 0.55% on the day. The cross has extended the pullback from yesterday’s high – where it fell just 6pips shy the week’s high of 385.77. A break of that level would have placed the cross at its highest since Oct 26.
  • EURPLN is down a more modest 0.25%, however, today’s price action has been contained within yesterday’s ranges with last week’s lows still some way off at 4.2935.

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