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Government Approves Giving Third Covid Vaccine Dose

HUNGARY
  • Earlier this morning, PM Orban said on state radio interview that the Covid vaccine will be mandatory in health care and that Hungary will approve giving third Covid vaccine dose.
  • Odds of another 30bps hike at the next meeting (July 27) have been rising significantly following the higher than expected CPI print in June last week (+5.3% YoY vs. 4.9% exp.).
  • FRA 6Mx9M is currently trading nearly 100bps above the Bubor 3M, implying that the market expects a series of 15bps hikes following the 'big hike' on July 27.
  • There are no important economic data to watch today.
  • EURHUF has been trending higher in the past few days, breaking above its 200DMA at 358.60 this morning; next resistance to watch on the topside stands at 360.80, followed by 364.40. On the downside, first support to watch below 358.60 stands at 357.30 (100DMA).
  • Hungary 10Y yield has been flat in the past week, oscillating between its 100DMA (2.79%) and 50DMA (2.89%). Key resistance to watch on the topside stands at 3%; on the downside, first support to watch below 2.79% stands at 2.74%.

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