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HUF Favoured Over PLN By JPM As Negative Real Yields Weigh

HUNGARY
  • Local yields see marginal bull flattening at the open. 20Y yields reject key resistance at 2.50, while 10Y yields drift lower in the 2.15-2.10 range.
  • USD/HUF remains rangebound in the 305-300 channel, driven primarily by external factors and risks surrounding the EU budget veto.
  • USD weakness should provide some scope for USD/HUF to push lower, but similar to PLN may be capped by ECB officials jawboning the EUR.
  • Limited local data this week should see the pair trade in line with global risk sentiment.
  • JPM still holds its short PLN/HUF due to negative real yields in Poland.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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