The HUF hit a wall

Late in the evening, the forint weakened slightly against the dollar and the euro. In the case of the European common currency, the exchange rate jumped up to the level of 371.3.

Against the dollar, the exchange rate is approaching 338.5.

At a very slow pace, but the forint found further momentum against the dollar, shortly before 8 p.m. it closed again at the 338 band. In the meantime, the American stock market indexes have also recovered, only the Nasdaq is slightly down.

Compared to the euro, the forint could not strengthen, so it remained in the range above 370.5.

Against the euro, the forint is at the level of 371, where it started to move sideways in the evening hours, and can sometimes recover only up to the rate of 370.8.

The forint-euro pair does not move out of the band between 370.5-371.3, so far no definite direction is visible for the exchange rate.

The forint is unable to pass the band of 370, which can be read from the technical analyzes – such as the RSI and DeMarks indicators. Even on Tuesday afternoon, the exchange rate could only approach this rate compared to the euro, but the pair remained at the level of 371.175 in the evening.

After yesterday’s strengthening, the dollar stopped, so the forint was able to close by two units. Here, after the transfer of the level of 337.5, space would open up for the forint, but this support is also too strong, now the exchange is at the rate of 338.5.

By the early afternoon, the strengthening of the forint stopped a little, the quote against the euro crept back to around 371.5, which means a strengthening of the forint by only 0.2% compared to yesterday.

It is also good news for the forint that the dollar started to weaken again, the quote against the euro rose by 0.3% to 1.096.

In the past few minutes, the euro was quoted below 370 for a short time, now it is around 370.5, which means a strengthening of the forint by half a percent.

On Tuesday morning, the forint was at 371.9 against the euro, which for now represents a minimal, 0.1 percent increase compared to yesterday. On Monday, the forint strengthened to this year’s peak, which means that the Hungarian currency does not appear to be suffocating for the time being. The question is whether it can gain further momentum from here and possibly hold on below 370, for this it would primarily require a favorable international mood in the coming days as well. Against the dollar, we are now around 339.9, while the British pound costs HUF 421.7.

Among the forint’s closest competitors, the Polish zloty and the Czech koruna started the day with stagnation, while in the emerging market the Turkish lira showed a minimal weakening, while the Russian ruble showed a 0.2 percent increase against the dollar.

The euro-dollar exchange rate can also greatly influence the fate of the forint. If the weakening of the American currency continues, it could be good news for the Hungarian currency as well. For the time being, the strengthening of the euro has stopped below 1.10, the important question of the next few days will be whether the euro can sustain this key level. This morning’s quote of 1.0937 is 0.1 percent higher than Monday evening. Meanwhile, the Japanese yen and the British pound also started the day with a small increase against the dollar.

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