CEE: First signs of calm but still too early to fade the sell-off – ING

Source Fxstreet

Yesterday's trading brought the first signs of calm in the CEE region. However, the EM space still remains under pressure and therefore it is too early to turn more optimistic on the region. Today the main focus will of course be on US data and the geopolitical situation and we prefer to wait for Monday to see developments over the weekend in the Middle East. However, as we've mentioned before, CEE currency fundamentals support a quick recovery if the situation calms down, ING’s FX strategist Frantisek Taborsky notes.

EM space still remains under pressure

“The Polish zloty should be the most defensive currency in the region amid the risk-off sentiment and should also have the easiest path to start appreciating again. Although we believe nothing changes that, yesterday's National Bank of Poland press conference altered the picture slightly. The governor surprised with another dovish move and confirmed that the first half of next year is the time for rate cuts.”

“Although we see current market pricing as still very dovish, given the spike in rates in recent days it has not been hard for the market to price back some rate cuts. However, the result has been a deterioration in rate differentials while the rest of CEE remains at record highs. At the same time, EUR/CZK yesterday was the first pair within the CEE3 to find some ground, but EUR/HUF also bounced off 402 and EUR/PLN rejected 4.310.”

“Overall though, we are hardly looking for confirmation that the situation has calmed down and today may reveal more as to the right time to turn more positive.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
EUR: Boosted by weaker US Dollar – INGEUR/USD is back up this morning after a rollercoaster ride on Friday as US payrolls were released. This week will all be about the US election with probably very little contribution by the eurozone calendar, ING’s FX analyst Francesco Pesole notes.
Author  FXStreet
6 hours ago
EUR/USD is back up this morning after a rollercoaster ride on Friday as US payrolls were released. This week will all be about the US election with probably very little contribution by the eurozone calendar, ING’s FX analyst Francesco Pesole notes.
placeholder
Nvidia asked SK Hynix to speed up HBM4 chip production amid soaring AI demandInvestingcom -- Nvidia (NASDAQ:NVDA) CEO Jensen Huang has urged SK Hynix to expedite production of its next-generation high-bandwidth memory chips, known as HBM4, SK Group (KS:000660) Chairman Chey Tae-won said on Monday, as per a Reuters report.
Author  Investing.com
6 hours ago
Investingcom -- Nvidia (NASDAQ:NVDA) CEO Jensen Huang has urged SK Hynix to expedite production of its next-generation high-bandwidth memory chips, known as HBM4, SK Group (KS:000660) Chairman Chey Tae-won said on Monday, as per a Reuters report.
placeholder
AI Powers Microsoft's Q1 Growth, but Stock Falls on Guidance. Is It Now a No-Brainer Buy?Microsoft's (NASDAQ: MSFT) cloud computing platform Azure continued to be the growth driver for the stock when the software giant reported its fiscal Q1 earnings. However, the company's guidance for Azure, while strong, left investors wanting more.
Author  The Motley Fool
6 hours ago
Microsoft's (NASDAQ: MSFT) cloud computing platform Azure continued to be the growth driver for the stock when the software giant reported its fiscal Q1 earnings. However, the company's guidance for Azure, while strong, left investors wanting more.
placeholder
Berkshire EPS misses estimates as insurance losses, mixed results weigh on Q3Investing.com -- Berkshire Hathaway's third-quarter results fell short of analyst expectations, with EPS underperforming consensus projections.
Author  Investing.com
6 hours ago
Investing.com -- Berkshire Hathaway's third-quarter results fell short of analyst expectations, with EPS underperforming consensus projections.
placeholder
Dogecoin (DOGE) Poised for a Move: Will It Start a Fresh Increase?Dogecoin price started a fresh decline after it failed to clear the $0.180 resistance like Bitcoin and Ethereum. DOGE declined below the $0.1720 and $0.1650 support levels.
Author  NewsBTC
6 hours ago
Dogecoin price started a fresh decline after it failed to clear the $0.180 resistance like Bitcoin and Ethereum. DOGE declined below the $0.1720 and $0.1650 support levels.
Related Instrument
goTop
quote