HUF: Global Equity Weakness Weighs on HUF, But Moves Lacking Conviction
May-22 12:40
- Weakness across the major equity benchmarks has weighed on the forint – and indeed most major EM currencies – throughout Thursday’s session, pushing the local currency to its weakest level in a week. Nonetheless, HUF weakness remains broadly contained for now, with EURHUF only moderately higher on the session following a brief test of initial resistance at the 20-day EMA. Focus therefore remains on Monday’s 1-month low of 401.53, and firm support at the 400.00 handle.
- Comments from the NBH's Mihaly Varga earlier today matched previous rhetoric, with the governor reiterating that inflation expectations must be anchored. As a result, there are scant expectations of any change to either rates or hawkish guidance in the near-term, with Hungary’s central bank set to meet next on Tuesday (May 27). While PLNHUF has recovered from Monday’s post-election lows, the cross could come under renewed pressure given the divergent stances of the NBH and NBP.
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US TSYS: Post-Philly Fed Non Mfg React
Apr-22 12:38
- Little reaction to the much lower than expected Philadelphia Fed Non-Mfg Activity data.
- Treasuries remain mixed, curves flatter (2s10s -4.066 at 60.135) with the long end outperforming, 10s steady: TYM5 at 110-25.5, 10Y yield -.0196 at 4.3910.
- TYM5 remains inside technicals: support at 110-15/109-08 (Low Apr 15 / 11 and the bear trigger), resistance above at 111-01+/17+ (20-day EMA / High Apr 16)
- Cross asset: Greenback off yesterday's lows, Bbg US$ index +2.18 at 1218.32, Gold still higher at 3452.0 after just trading to new all-time high of 3500.10 overnight; stocks recover small ground after Monday's rout: SPX eminis +43.0 at 5228.0.
MNI: US APR PHILADELPHIA FED NONMFG INDEX -42.7
Apr-22 12:31
- MNI: US APR PHILADELPHIA FED NONMFG INDEX -42.7
EUR: FX Exchange traded Option
Apr-22 12:28
EURUSD (6th June) 1.1550c, sold at 0.01490 in ~1k.
