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Slight Dollar Downtick Sends HUF to Top of EMEA Pile

HUF
  • The downtick in the dollar since the start of the European session has lent support to the forint, with EURHUF looking to test its intraday lows seen printed overnight. The forint gained most among EMEA currencies last week, strengthening 1.7% to a late-July level amid relatively low liquidity, and sits toward the top of the leaderboard again today. With little in the way of notable domestic drivers and data, HUF performance is likely going to continue to be a function of global risk sentiment this week.
  • Nevertheless, trend conditions in EURHUF remain bullish with the latest pullback considered technically corrective, allowing the recent overbought trend condition to unwind. A more sustained break of the 20-day EMA would signal scope for a move towards 380.16, the 50-day EMA, which is the next important support level.

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