The Hungarian forint eased a touch to the euro yesterday despite some positive domestic news. This time it could be the technical picture, which worked against the forint, because the EUR/HUF found support at the 250.0 level. The pair tested this level several times in early trade yesterday but failed to break it.
Even heavy demand in a 3Y bond auction did not encourage EUR/HUF for successful break below the 250.0. Hence, the pair hovered in the 250 area in the afternoon closing the session at the 250.5 level. The release of the December public budget figures, which came out just at the closing time did not alter a tone of the market, since the released lower-than-targeted deficit was expected (for more see the news).
While the domestic calendar empty, the forint will definitely eye the US bond market and its reaction to a release of the non-farm payrolls figures. Should the release figure be at or below the market consensus (200K), the forint would firm and vice versa.
(CSOB - Investment research)