HUF: Forint Outperforms Regional Peers as Local Focus Turns to NBH

EURHUF is biased slightly lower this morning, down 0.17% at typing and below Friday’s lows with the local currency outperforming its EMEA peers. Local catalysts have been limited ahead of the NBH rate decision tomorrow, with global price action today a function of the uncertainty stemming from Biden handing over the Democratic nomination to Kamala Harris

• While traditional safe haven assets in G10 were bid at the start of the session, the moderate slip in both the greenback and US yields have helped emerging market currencies stay on the front foot.
• In Hungary, focus is on the NBH rate decision tomorrow afternoon, where analysts are split between a hold decision and a 25bp rate cut. Despite headline inflation coming in below expectations in June, Deputy Governor Virag said the central bank will not overreact to a single positive data-point.
• EURHUF continues to trade below the 50-day EMA, with its next support level found at 388.88, the 61.8% retracement of the May 28 – Jun 14 bull-leg. The 76.4% retracement level of the same bull-leg is found at 386.53.