HUF: Stability in Global Markets Over US Holiday Provides Relief to Forint

The consolidation of major equity indices close to their recent highs has provided stability to EM FX. Consequently, EURHUF has extended the pullback from this week’s earlier high of 396.56, down 0.3% on the session, though we still remain above Monday’s low near the 393.00 mark.

• Given US markets are closed today, broader liquidity will likely be subdued during Thursday’s session with attention therefore shifting to NFP data tomorrow. Indeed, ING noted yesterday that they expect stagnation at current or lower levels if the global story allows. Regional focus turns to the press conference of NBP Governor Adam Glapinski this afternoon.
• For EURHUF, a Fibonacci retracement level at 395.73 remains in focus. A clear break of this level could signal scope for an extension towards 399.75, the Mar 12 high and key resistance. On the downside, support to watch lies at 392.64, the 50-day EMA.