Weaker Greenback Provides Limited Strength to CE3 FX

While the stronger euro and slightly lower US yields have been providing some relief to EM FX, moves across CE3 FX have been relatively contained. With few domestic data releases scheduled, price action across the region is likely to be a function of broader global sentiment.

• For EURHUF, this week’s relatively narrow ranges mean a familiar technical picture remains in play. Resistance is found at 390.49, the Jan 30 high, clearance of which could signal scope for an extension higher toward 394.67, the Aug 03 2023 high. On the downside, a break of the 50-day EMA at 384.39 is required to instead reinstate a bearish theme.
• EURPLN remains in consolidation mode. Downside attention is on 4.2935, the Dec 13 low and key support. Clearance of this level would confirm a resumption of the downtrend that started in September last year. Initial firm resistance is defined at the 50-day EMA, intersecting at 4.3530.
• While the CZK is among the strongest currencies in EMEA at typing, EURCZK remains relatively close to its recent 2-year highs at 25.519. Even with today’s slight downtick, the 14-day RSI of EURCZK remains above the ‘overbought’ 70-threshold. Should today's selling pressure intensify, bears could eventually challenge the Jan 2 high of 24.867.