MNI China Daily Summary: Monday, July 29

MNI: China CFETS Yuan Index Up 0.15% In Week of Jul 26

MNI: PBOC Net Injects CNY243.37 Bln via OMO Monday

MNI: PBOC Sets Yuan Parity Higher At 7.1316 Mon; -1.56% Y/Y

CHINA PBOC CONDUCTS CNY301.57 BILLION VIA 7-DAY REVERSE REPOS MON

CHINA SETS YUAN CENTRAL PARITY AT 7.1316 MON VS 7.1270

CBI Retail Sales Fell Faster Than Expected For The Second Month

MNI: UK CBI JUL DIST TRADE REPORTED SALES -43

MNI: UK BOE JUN MORTGAGE APPROVALS 59,976

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Moderate EURHUF Recovery Following Fresh 9-Month Low

HUNGARY
EURHUF trading on the front foot on Thursday, rising 0.38% and partially retracing yesterday’s strong 1.5% selloff. Higher US yields and dampened global sentiment are weighing on the EM currency basket, with Euro weakness also providing an additional headwind for the Forint.
  • The pair printed fresh 9-month lows on Wednesday and from a technical perspective, the focus remains on 370.82, the 1.382 projection of the Oct 13 - Nov 10 - Dec 12 price swing. Initial resistance is at the 20-day EMA that intersects at 382.80.
  • Interestingly, NatWest have turned neutral on HUF due to the risk of a cut in the effective rate while inflation stands at 25.7% y/y. They say increasing political pressure to ease financial conditions may warrant an immediate rate cut at the NBH’s daily announcement of the O/N rate.
  • Separately, Moody’s will update their sovereign credit rating for Hungary tomorrow. Both S&P and Fitch downgraded Hungary’s outlook from “stable” to “negative” in January, citing persistently high inflation and external pressures. Another rating outlook downgrade could provide headwind to further forint gains with the unlocking of frozen EU funds still far from a foregone conclusion.
  • Trade balance data is on the docket tomorrow (Prior: -EUR154m). In its February policy statement, the NBH said they expect the trade balance to improve significantly in the coming months as energy prices continue to moderate.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.