Hungary Unlikely To Blink On EU Veto Ahead of EU Summit

• local rates slightly higher at the open after bull flattening during yesterday's session.
• Yields expected to trade choppily throughout the session with EU veto headline risks likely to push both yields and the currency around ahead of this evening's EU video summit.
• USD/HUF moves higher through topside resistance at 305 (established 5 Nov) on USD strength and weakening global risk appetite. A daily close above this level opens up a move higher towards 307, which coincides with the 100dma.
• The NBH will be monitoring HUF depreciation closely, but are unlikely to lift the 1w deposit rate above 0.75% in the absence of a move above 318-320.
• The cross will remain vulnerable to EU veto headline risks and signs of the EU edging Hungary & Poland out of the budget.

Local News

• EU leaders to hold virtual summit (17:00GMT) in an attempt to unblock the EU budget (bbg)
• EU leaders threaten to push ahead with the EU budget without Poland & Hungary as a last resort if they fail to drop their veto - according to French officials, but noted that the priority is to find an agreement that includes them.
• This comes after Hungarian officials doubled down on their veto stance in various comments, while the EU parliament said no further concessions would be made on RoL - AFP