Selling Pressure Hits CE3 Currencies

CE3 FX have all gone offered in a synchronised move, despite the apparent absence of regional catalysts. All three currencies underperform the Euro, with the Hungarian Forint pacing losses, even as local CPI data printed broadly in line with expectations.

• Contagion risk underpins the exposure of regional currencies to headlines surrounding Russia's invasion of Ukraine but we haven't seen any major fresh headlines on the matter this morning.
• NBH Governor MAtolcsy said that the country has a "very difficult" task to restore balance in the economy, adding that the central bank is at odds with the Cabinet on macroeconomic policy.
• EUR/HUF has climbed to its highest point since Feb 24 and last deals at HUF381.56, with bulls eyeing resistance from Feb 17 high of HUF387.40.
• EUR/CZK came close to testing its 50-DMA (CZK23.807) and topped out at CZK23.765 before easing off to CZK23.636, where it sits at typing.
• EUR/PLN last deals at PLN4.6956, with the pair's move more limited than parallel upswings in EUR/HUF and EUR/CZK, ahead of the NBP rate decision today.