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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.
EM FX
- Last month, the rise in inflationary pressures in the CEE region combined with the broad USD strength as Fed taper nears have led to a sharp depreciation in CEE currencies.
- HUF was one of the weakest performers among the EM world (after TRY as 'dovish' CBRT sent Lira to all time lows), down nearly 5% against the USD. USDHUF reached a local high at 312 yesterday (highest level since Oct 2020) before consolidating lower; key resistance to watch on the topside stands at 316.
- PLN also weakened sharply against major crosses last month, was down 3.8% against USD. USDPLN reached at high of 4.0160 (May 2020 high) before edging lower.
- The move on CZK was smaller as volatility on the koruna has been lower against major crosses in recent months. CZK was down 1.7% against USD in September, which pushed the USDCZK pair above the 22 level yesterday before consolidating lower.
- Overall, we have seen that CEE currencies have been moderately to significantly 'oversold' following September move and are therefore are likely to consolidate this month as momentum on USD eases.
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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