HUF Paces Losses In EMEA Space Amid General CE3 Underperformance

CE3 currencies are the worst performers in the EMEA space, with the Hungarian Forint underperforming the Zloty, even as a senior Polish Cabinet minister revisited the idea of imposing a windfall tax.

• Poland's State Assets Minister Jacek Sasin said in an interview that the government is working on a windfall tax on mining and oil companies, with the details set to be announced later this month.
• PLN/HUF has edged higher while holding yesterday's range, as the rate remains in consolidation phase. The RSI's return from oversold territory failed to result in any meaningful recovery in the spot rate, which has generally traded sideways since mid-Feb.
• PLN/CZK has unwound its initial upswing and now sits marginally lower on the day. Czechia's parliament remains locked in a debate on the government's pension bill, one of the key measures to reduce spending.
• CZK/HUF refreshed a two-week low before rebounding and last trades +818 pips at HUF16.0520, albeit the broader downtrend remains intact after the formation of a 50-DMA/200-DMA death cross in February.