The Hungarian central bank will announce...>

EURO-HUF: The Hungarian central bank will announce its policy rate decision at

1200GMT today. All 19 economists in a Bloomberg survey expect rates to remain on

hold at 0.90%.

- Danske expect the MNB will again leave the rate unchanged at 0.90% despite

core inflation climbing to the upper bound of the central bank target on brisk

economic growth and double-digit wage expansion. However, it may implement

another hike of the overnight depo rate and further cuts in FX swaps as a tool

for liquidity tightening. 

- EURHUF backed away from last week's highs with the downtrend extending to

Huf325.11 yesterday. Rate currently rests on channel base support (Huf325.58)

with further support located at Huf323.29 which represents the 50% retracement

of Huf319.08-327.50. Below here opens the May 6 low at Huf322.33, ahead of the

200-dma at Huf321.58. Double top-resistance is seen at Huf327.45/50, with a

break here needed to challenge the Sep 6 2018 high at Huf328.43.

- On a technical basis traders are reminded of the recent golden cross formation

(50-dma above 200-dma).