- 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
The material has been provided by InstaForex Company – www.instaforex.com