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Selling Pressure On HUF Remains Elevated Despite NBH Hike

HUNGARY
  • Selling pressure on HUF remains elevated despite yesterday’s NBH ‘surprising' hike.
  • As a reminder, the central bank decided to raise its 1W depo rate by 50bps to 7.25% (vs. unchanged exp.).
  • EURHUF hit a low at 394.50 yesterday morning following the decision before edging back towards the 400 level.
  • As we previously mentioned, the HUF remains driven by geopolitical uncertainty and the global risk off sentiment and therefore hiking rates too aggressively may not be enough to counter the forint weakness.
  • We previously saw that the MT chart on EURHUF looks ‘bullish’.
    • ST resistance to watch on the topside stands at 402.90 (pair’s all time high).
    • Key level to watch above that stands at 410.80 (123.6% Fibo projection of 352.60 – 399.60 range).

Source: Bloomberg/MNI

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  • Selling pressure on HUF remains elevated despite yesterday’s NBH ‘surprising' hike.
  • As a reminder, the central bank decided to raise its 1W depo rate by 50bps to 7.25% (vs. unchanged exp.).
  • EURHUF hit a low at 394.50 yesterday morning following the decision before edging back towards the 400 level.
  • As we previously mentioned, the HUF remains driven by geopolitical uncertainty and the global risk off sentiment and therefore hiking rates too aggressively may not be enough to counter the forint weakness.
  • We previously saw that the MT chart on EURHUF looks ‘bullish’.
    • ST resistance to watch on the topside stands at 402.90 (pair’s all time high).
    • Key level to watch above that stands at 410.80 (123.6% Fibo projection of 352.60 – 399.60 range).

Source: Bloomberg/MNI