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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.
HUNGARY
- Selling pressure on HUF has remained elevated following the NBH decision to hike by 15bps this week.
- A 30bps hike could have eased the volatility on the long end of the interest rate curve and benefit the forint in the short term.
- HUF is one of the weakest FX performers among the EM world in recent weeks, down 5.5% against the USD and 4.1% against the Euro since the start of September.
- EURHUF keeps testing new highs and is currently trading at its highest level since April 2021. Next level to watch on the topside stands at 365.
- Key resistance on EURHUF remains at 370; policymakers have been carefully watching this resistance as a break above that level could definitely lead to higher volatility in both equity and bond markets as the uncertainty over the economic recovery will continue to rise (see chart).
- A break above that level may lead to a more aggressive hike at the next meeting (Nov. 16).
Source: Bloomberg/MNI
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.
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