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German Govt Blocking Parts For New Paks Nuclear Reactor Block

HUNGARY
  • The German government is continuing to block Siemens Energy from delivering the control system it is supplying for the new reactor blocks of the Paks nuclear plant, while the company's French partner, Framatome, has already approved it, MTI report citing minister of foreign affairs and trade Szijjarto in Paris yesterday. The upgrade of the Paks plant is crucial for Hungary's energy security, Szijjarto said after talks with French Energy Minister Agnes Pannier-Runacher.
  • EUR/HUF is trading close to yesterday’s 9-month low of 377.15 as markets continue to take optimism from Deputy Governor Virag’s comments on Monday that the NBH will act “patiently” regarding its fight against inflation, and that the first rate cut “is not on the horizon”. The forint’s YTD spot returns against the euro have exceeded that of all of its CEEMEA peers, with price action unfazed by data yesterday that confirmed that Hungary entered a technical recession.
  • There is little else in the way of domestic news flow driving markets today, with the data docket empty until next week also.

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