EUR/HUF has staged a strong rebound after touching the lower end of its multi-month range near 386. The pair is now testing the 50-day moving average, a key resistance that has limited gains since June, Société Générale's FX analysts note.
EUR/HUF remains under pressure after failing to reclaim the 200-day moving average. A rebound is testing the 399/400 resistance zone, but inability to break higher risks extending the decline toward 389.90 support, Société Générale's FX analysts note.
The Hungarian National Bank (MNB) left its policy rate unchanged at 6.50% yesterday and issued a surprise 2pp cut to the reserve requirement ratio (RRR) from 10% to 8%.