EUR/HUF: Downtrend extends with key supports – Societe Generale

💡 DMK Insight

The MNB’s steady 6.25% rate is a key signal for traders watching EUR/HUF. With the pair struggling to maintain levels above the 200-day moving average, the recent decline suggests bearish sentiment could persist. The interim low near 360 is crucial; a break below this level could trigger further selling pressure. Traders should keep an eye on economic indicators from Hungary and the Eurozone, as any shifts could impact the currency pair’s trajectory. Additionally, if the MNB maintains its stance in the coming months, it might reinforce the HUF’s weakness against the euro, especially if inflationary pressures continue to mount in the region. On the flip side, if the MNB surprises with a hawkish tone or unexpected policy adjustments, it could lead to a short-term rally in the HUF. Watch for any comments from MNB officials or upcoming economic data releases that could sway market sentiment.