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HUF Flips Positive as Funding Decision Could Come in a Few Days

HUNGARY
  • Bloomberg cites an unnamed Czech Minister as saying they are confident that a Hungary accord can be reached in a few days. This is ahead of market expectations for a approx. one week delay that had been floated previously.
  • EUR/HUF hits new session lows on the back of those Czech minister comments, with markets interpreting the headline as a positive sign that ministers may be progressing well through the Commission's report.
  • Recall the expectations are for the ECOFIN to support the Commission's recommendation for an extension of the freezing of cohesion fund, but issue a preliminary approval for the COVID recovery plan, thereby unlocking 2023 funds just ahead of the deadline.

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