Hungarian Forint: Key 360 area supports consolidation against Euro – Societe Generale
Societe Generale analysts describe EUR/HUF as consolidating above the 360 area after an interim low near 348 in June. The pair is capped by the 200-day moving average at 370/371, with a breakout above this zone needed to confirm a larger up-move.
Societe Generale analysts have noted that the EUR/HUF currency pair is consolidating above the 360 area after dipping to near 348 in June. They believe a breakout above the 200-day moving average at 370/371 is necessary to confirm a larger upward trend. The recent low at 359 serves as a crucial support level; however, a break below this and the 359 pivot low may signal further declines.
Hungary's central bank is expected to keep the policy rate unchanged at 5.50% in today's decision, despite factors like higher energy prices, a stronger dollar, and tightening monetary policy in the US and Europe reducing maneuverability for Hungary. Analysts anticipate a potential reduction in Hungary's inflation target from 3.0% to 2.5%, signaling the country's long-term commitment to Eurozone convergence.
The base case for policy easing in Hungary is a resumption in December, gradually lowering the rate to 4.50% next year.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
