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HUF Weaker, 10Y Yield Slightly Higher Following June CPI Print

HUNGARY
  • Last week was marked by another positive surprise in inflation in Hungary with CPI rising by 5.3% YoY in June (vs. 4.9% exp.) and up from 5.1% the previous month.
  • This new print confirms that NBH will continue its tightening cycle and gradually rise its benchmark rate to curb inflationary pressures.
  • USDHUF has been trending higher this week after failing to break below its 200DMA on Monday; next resistance to watch on the topside stands at 305. On the downside, first support to watch below 298.70 (200DMA) stands at 298 (100DMA).
  • Hungary 10Y yield has consolidating slightly higher in the past few days following CPI positive surprise last Thursday; first resistance stands at 2.89% (50DMA), followed by key level at 3%. On the downside, first support to watch stands at 2.80%, followed by 2.78% (100DMA).

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