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HUF Weakens Alongside EM Peers Ahead of US CPI

HUF
EURHUF (+0.10%) trades marginally firmer this morning, though remains well within yesterday’s ranges, as softer global equity indices and a slightly firmer greenback ahead of the US inflation data provides a headwind to EM FX. There is little in the way of domestic catalysts.
  • Technically, EURHUF remains bullish following the recent recovery in early September. A clear and sustained break of 391.64, the Aug 21 high, would open 394.67, the Aug 3 high and a key resistance. On the downside, a clear break of the 50-day EMA would be bearish and instead, expose 378.24.
  • US inflation data is the key risk event today at 1330BST/1430CET. Consensus puts core CPI inflation at 0.2% M/M in August in what’s likely only a minor uptick from unrounded 0.16% M/M readings in both June and July. NBH minutes are also on the docket at 1300BST/1400CET.

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