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27 Jan 2015
EUR/HUF testing 312.00 post-MNB
FXStreet (Edinburgh) - The Hungarian forint gained some ground following today’s MNB decision, sending EUR/HUF to sub-312.00 levels.
EUR/HUF weaker after MNB
The cross deflated further after the MNB (Hungarian central bank) left intact its refi rate today at 2.1%, broadly in line with market expectations. However, and according to the last Inflation Report published in December, domestic consumer prices in Hungary will remain significantly below the inflation target at least during the first half of the year, just to start heading higher towards 3% in H2 2015. The outlook for the inflation does not rule out further easing measures by the MNB.
Furthermore, analysts at TD Securities add “Our central expectation is for rates to remain on hold for the rest of the year, but the risks are clearly to the downside”.
EUR/HUF key levels
At the moment the cross is up 0.11% at 311.94 and a surpass of 313.55 (23.6% of 327.00-309.40) would target 315.80 (30-d MA) en route to 319.45 (high Jan.12). On the downside, the initial support aligns at 309.85 (200-d MA) followed by 309.40 (low Jan.23) and then 305.25 (low Dec.9).
EUR/HUF weaker after MNB
The cross deflated further after the MNB (Hungarian central bank) left intact its refi rate today at 2.1%, broadly in line with market expectations. However, and according to the last Inflation Report published in December, domestic consumer prices in Hungary will remain significantly below the inflation target at least during the first half of the year, just to start heading higher towards 3% in H2 2015. The outlook for the inflation does not rule out further easing measures by the MNB.
Furthermore, analysts at TD Securities add “Our central expectation is for rates to remain on hold for the rest of the year, but the risks are clearly to the downside”.
EUR/HUF key levels
At the moment the cross is up 0.11% at 311.94 and a surpass of 313.55 (23.6% of 327.00-309.40) would target 315.80 (30-d MA) en route to 319.45 (high Jan.12). On the downside, the initial support aligns at 309.85 (200-d MA) followed by 309.40 (low Jan.23) and then 305.25 (low Dec.9).