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HUF Outperforms Regional Peers Following US Inflation Report

HUNGARY

HUF sits at the top of the CEEMEA FX leaderboard this afternoon following the moderately soft US inflation report. The kneejerk decline in US treasury yields provided support to the high yielding HUF, which has remained resilient despite the partial retracement in US yields as EURUSD looks to test the key 1.1000 level at the time of typing - lending further strength to euro-proxies.

  • The EURHUF cross continues to respect recent ranges and nearby technical levels. 372.38 - the Mar 1 low - remains the key support level to watch.
  • The currency is also being supported by this morning’s domestic inflation print, which sees the nation’s inflation reading as the highest in the region, despite two continuous months of decline.
  • Stubbornly high inflation is likely to support the NBH’s patient stance on policy, which was reiterated in the release of the March meeting minutes earlier today.

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