• The National Bank of Hungary lowered its two-week deposit rate by a slightly larger-than-expected 15bp, to 1.35% on Tuesday 
  • The MPC formally concluded the easing cycle and emphasised that loose monetary conditions will likely be maintained for an extended period
  • Markets pursued the statements as ‘hawkish’, do not believe the NBH would pull the trigger and officially close the easing cycle 
  • Accordingly, EUR/HUF fell sharply from 309.81 to 307.02 following the larger-than-expected rate cut
  • The pair is currently trading at 307.66, after failed attempts of recovery, daily price action slips into cloud
  • Momentum turns bearish, further downside likely
  • Major support lies at 307.02(Jul 21 low), below which the pair could extend fall upto cloud base by 305.00

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