HUF: Weak German PMIs Push EUR/HUF Above Tuesday’s Highs

The weaker-than-expected flash PMIs in Germany across both manufacturing and services sectors have weighed on the euro and the Hungarian forint in tandem. The figures have helped push EURHUF to a daily high, with the cross trading just above yesterday’s high of 391.63 at typing.

• The NBH noted in yesterday’s policy statement that while economic growth started in Q1, “weak economic activity in Europe is having an increasingly lasting impact.” It also added that “subdued European economic activity is holding back domestic exports.”
• Tuesday’s rate decision led to moderate HUF weakness given the more dovish policy mix, however the forint’s losses were mostly reversed by the end of the European session. For EURHUF, the 50-day EMA at 392.25 remained intact. Our full review of yesterday's rate decision will be released later today.