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HUF: Forint Lags Regional Peers Following Weak Retail Sales Data

HUF
  • The forint has trimmed some of Wednesday’s gains against the euro and is lagging behind its CE3 peers at the start of today's session. EURHUF nevertheless remains some way below yesterday’s highs, and well-contained within this week’s ranges overall.
  • While the recovery in the USD index off the overnight lows may be providing a headwind to broader EM FX, weaker-than-expected Hungarian retail sales data for April (+3.2% Y/Y vs. +4.2% exp.) is likely accounting for HUF underperformance within the EMEA region.
  • At typing, EURHUF is trading just below the 392.00 handle, up around 0.3% on the session. Initial support levels remain some way off at 389.45 and 388.90, the 50- and 20-day EMAs respectively. Topside focus falls on 393.24, a retracement level.

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