HUF: Forint Extends This Week’s Losses Amid Broader CE3 Weakness

Close proximity of the USD index to its recent highs has kept the pressure on CEE FX, with HUF performing broadly in-line with its regional counterparts this morning. Weakness in CZK following lower-than-expected CPI figures for May could be spilling over into HUF and PLN. At typing, EURHUF is up 0.45%, just below yesterday’s high of 394.77.

• PLNHUF and CZKHUF are both little changed on the day. Ranges for both are also relatively narrow in comparison to recent sessions. The latter pierced above 16.00 yesterday for the first time since September last year, while the 100-DMA continues to limit losses for the former.
• For EURHUF, the move higher reinforces a bullish theme and also confirms a clear break of an important hurdle at 391.13, trendline resistance drawn from the Mar 12 high. This signals scope for an extension towards 395.73, 76.4% of the Mar 12 - May 28 bear leg. Key short-term support has been defined at 388.62.
• Looking ahead, there are no major data releases scheduled for the remainder of the week. The NBH meet next Tuesday.