HUF is one of the better performing.........>

HUNGARY: HUF is one of the better performing currencies across EMEA so far

Tuesday, but EUR/HUF remains well within its recent and holds in close proximity

to the cycle high printed yesterday at 329.46, the highest level since July

2018.

-The Hungarian central bank rate decision is due at 1300BST/0800ET and all

analysts surveyed see the bank holding benchmark rates unchanged at 0.90% and

the overnight deposit rate at -0.05%.

-The bank's dependency on the ECB will likely see any policy changes delayed

until after September's ECB meeting (September NBH meeting is on 24th), where

the bank will also receive updated economic forecasts for Hungary.

-EUR/HUF sits just below multi-year resistance at the 2018 high of 330.75. A

break above here opens record low levels for the HUF, support sits initially at

325.49, the 23.6% retracement for the 312.62-329.46 move.