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HUF: Moderate HUF Recovery Does Not Alter Overall Bearish Picture

HUF

With the USD Index consolidating yesterday's retreat off highs, EURHUF has traded in a narrower range today. The cross is a moderate 0.1% higher at typing. Despite the broader pullback from its multi-month highs over the past week, technical conditions remain bullish with initial firm support still some way off at 393.34, the 20-day EMA. Attention therefore remains on key resistance at 399.75.

  • Forint underperformance over the past 2 months has led to a gradual increase in PLNHUF, with the cross trading a touch below the 92.00 handle at typing. A clear break of this handle could signal scope for an extension towards the multi-year high of 93.23.
  • Given the lack of domestic drivers, forint performance is likely to be influenced by broader themes across the emerging markets space moving forward, with attention therefore shifting to major global data releases this week and the CNB rate decision on Thursday.

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