The EUR/HUF tests again the 300 resistance
The announcement of Hungarian official leaders from the government about the abolishment of foreign currency denominated housing loans in the near future pushed HUF to a weakening trend. So the EURHUF pair reached 300 levels, which has been a strong resistance level in the last 3 months. Technically we see a weakening trend of HUF since end-May with a narrowing triangle. We expect that around EURHUF 300 levels may stop HUF weakening in short-term and may strengthen to around 295, but the repayment of the FC denominated housing loans may keep an ongoing weakening pressure on HUF in the coming months. As the NBH reached its first important target of base rate at 4%, we expect that MPC will slow rate cut cycle and may cut base rate by 15-20bp in August.
Read the full report: FX Daily
KBC