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HUF Extending Gains Amid Euro Strength

HUNGARY
  • EUR/HUF breaking lower still, with EUR/HUF extending losses on the show below the 50-dma to near next support at 405.14. No notable news or headlines to drive HUF here, with EUR's CEE proxies all higher early Wednesday.
  • Moves follow the NBH decision yesterday which - while as expected - reaffirmed the bank's stance to tighten liquidity and financial conditions with the emergency tools launched a fortnight ago. Tighter conditions evident in today's BUBOR fix, with the 3m touching 16.76% - the highest rate since 1998.

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