Higher core yields and softer major US equity indices are weighing on the Forint, which has been steadily declining over the course of Thursday's session. USDHUF trades a notable 1.30% in the green, taking this week’s gains to ~2.6%, eating into the July 07 – July 13 downleg. Meanwhile, EURHUF has pierced the 381.00 handle, notably piercing resistance at 380.80, the Jul 11 high.

• The move marks an extension of the sharp cross/HUF rally on Wednesday which lacked any real fundamental trigger - prompting sell-side desks to see the moves as flow- and positioning-driven, with price action consistent with shorter-term fast money involvement and potential short-covering.
• HGBs remain soft and the yield curve has continued to flatten. Yields on 3Ys are up over 18bps while 10Ys deal 16bps higher. The move extends the bounce in yields off of recent 1-year lows and mirrors price action seen in broader FI markets.