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Forex - Hungary, Czech Republic FX Flows - Forint, koruna feel pressured from external factors
Written by article default Wednesday, 17 November 2010 13:04
The forint feels the pressure this morning from external factors (not unlike the rest of the regional peers) as equity losses overnight were dragging EUR/USD lower, currently below 1.35. EUR/HUF made an unsuccessful attempt at the key resistance of 278.20 and the market turned south again. Next targets on the upside are the 100 dma at 279.20 and from there 280 is close. Local contacts report that market activity is still calm; a London name was seen selling into the rally. Irish and Portuguese debt stories still dominate the market, while domestically the release of the minutes is later today would be interesting to watch for discussion on inflation and the effects of the 2011 budget. Pressure from Eurozone debt worries is also affecting the bonds market, where yields have been edging up especially in the short and medium term maturities. Elsewhere, the koruna is also on the back foot in line with the global backdrop but the locals are off today due to the public holiday.