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PLN, HUF Outperform Amid Broad USD Sell-Off

CEE FX
  • Latest greenback sell-off further favouring CEE currencies, with HUF the outperformer across CEE, closely followed by PLN. USD/HUF has just broken through support at 345.64 as well as 345.21 to put the pair at the lowest levels since late July - mimicking the price action in the broad USD Index.
  • EUR/HUF has broken back below the 200-dma as well as, perhaps more notably, the 50% retracement of the recovery off the Nov14 low. The sell-off would gather pace on weakness through 378.09 to expose the bear trigger of 375.62.
  • Broader PLN outperformance persists during weak USD backdrops, helping aide USD/PLN to July and YTD lows of 3.9357. Weakness through here puts rate at lowest since Feb'22, with pressure on EUR/PLN adding to the downside - rate is now at lowest since 2020.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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