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US Data Prompts Rally in CEE FX, EURPLN Approaches Multi-Year Lows

CEE FX

CEE FX has been buoyed by the risk-on moves across global markets following the weaker-than-expected US data. A surge in major equity benchmarks and lower UST yields are providing a tailwind to EM FX in general, with the likes of HUF, PLN and CZK experiencing an additional tailwind from single currency strength.

  • EURPLN came under immediate pressure to test the 4.4000 handle, placing the cross within close proximity to multi-year lows at 4.3986, the July 31 low. A break of this level would open the 2020 lows around 4.3700.
  • EURHUF is trading at a fresh multi-month low at typing, targeting 373.98, the 76.4% retracement of the Jun 12 - Aug 3 bull leg.
  • EURCZK is 0.45% in the red though is respecting recent ranges. Price remains above the 50-day EMA at 24.475.

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