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/HUF: Polish CPI Data & Uncertainty Around EU Funds For Hungary Support PLN/HUF

PLN

PLN/HUF has traded on a firmer footing, with the Forint sitting at the bottom of the EMEA pile after the European Commission recommended making the disbursement of EU recovery funds earmarked for Hungary conditional on the nation meeting "essential milestones" related to its judicial system. Meanwhile, an unexpected slowdown in Poland's CPI inflation lent support to the Zloty and local government bonds.

  • At typing, PLN/HUF trades at HUF87.62, up 79 pips on the day after charting a graveston Doji candlestick on Tuesday. A clearance of Nov 24 high of HUF88.38 would bring the recent all-time high of HUF89.65 into play. Bears look for a pullback towards Nov 10/Oct 21 lows of HUF84.96/84.91.
  • Hungary/Poland 10-year yield spread has continued widening today, reaching levels last seen on Nov 14. WIG20 trades slightly below neutral levels, while the BUX extends its bullish run, adding ~0.5% today.

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