July 28, 2022 06:21 GMT
- EURHUF has been retracing higher this week after finding support slightly below the 395 level on Monday.
- The 100bps hike from the NBH on Tuesday has not been enough to support the forint; even though the HUF appears currently extremely ‘cheap’ relative to its fundamental value, it is still driven by external factors such as geopolitical uncertainty and risk aversion.
- This morning, the NBH is likely to readjust its 1W depo rate by 100bps following Virag’s comments at his press conference on Tuesday.
- ST support to watch on the downside stands at 400, followed by 398.10 (50DMA).
- On the topside, resistance to watch stands at 407.
- Unemployment rate is likely to remain steady at 3.5% in June.