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Hungary Continues To Oppose EU Sanctions On Russian Oil

HUNGARY
  • While EU states are preparing to impose a ban on Russian oil and gas, Hungary reiterated lately that it is still not supporting it as it has no ST alternative to working with Russian petroleum suppliers.
  • According to Hungary’s Foreign Minister, Russian oil accounts for about 65% of the oil Hungary requires for now.
  • EURHUF continues to retrace higher this week despite last week’s hikes (100bps in ‘core’ rate and 30bps in depo rate); the pair is currently trading above the 380 level.
    • ST resistance to watch on the topside stands at 383.20.
    • On the downside, support to watch below 380 stands at 375.10.
  • Hungary 10Y yield continues to retrace higher this week amid rising inflation risks. The 10Y yield broke above the 7% level, currently trading at its highest level since October 2012. Next ST resistance to watch on the topside stands at 7.38%. On the downside, support to watch stands at 6.66%.

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