HUF: EUR/HUF Back Above 390 Ahead of NBH

EURHUF has partially reversed some of yesterday’s losses, up 0.2% at typing and back above the 390 handle as we near the NBH rate decision. There is no clear consensus over the outcome of this meeting, though expectations among analysts are tilted toward a 25bp rate cut. Our full preview of the decision can be found here.

• Sustained weakness in Chinese equities amid a lack of major policy support following the Third Plenum may be filtering through to the broader EM FX basket, with the onshore benchmark CSI 300 Index closing 2.1% lower following a 0.7% drop in the previous session. 
• Meanwhile, weakness in the commodities complex (most notably in iron ore and copper prices reaching multi-month lows) is likely providing an additional headwind to emerging market currencies. Global catalysts have otherwise been limited today, with the USD index close to flat and US yields moderately lower across the curve.