HUF: USD/HUF Recovers from Multi-Month Low as NBH Decision Enters Focus

A fade in greenback weakness following the dovish FOMC minutes has prompted some moderate losses for EM currencies, despite major equity indices consolidating close to their recent highs. USDHUF is around 0.2% higher at typing, having briefly traded to its lowest level since February yesterday, while EURHUF sits within Wednesday's ranges.

• Increasing odds of a Fed rate cut in September, combined with an expected pause in the NBH’s easing cycle next week, has contributed to a ~3% advance for the forint against the dollar this month. 351.29, the Feb 2 low, marks support for USDHUF.
• An interview by Economy Minister Marton Nagy to index yesterday reignited a spat between the NBH and Hungarian government. In that interview, the minister renewed calls on the central bank to provide stimulus – the latest sign of discontent between government and NBH officials – and said “The central bank is only interested in inflation. Inflation is now around 4 percent. The restart of growth can already be started in such an inflationary environment.” The forint was unfazed by the comments, but has reacted to matters on this front in the past.