CEE FX: Cautious start with HUF still favoured – ING

FXStreet Insights Team FXStreet

ING’s Frantisek Taborsky expects Central and Eastern European FX to start the month cautiously despite improving sentiment and busy local data. He sees limited room for further hawkish repricing in Poland and the Czech Republic, more scope for dovish moves in Hungary, and notes EUR/HUF’s four-year low, with 350 still the bank’s mid-year target for the pair.

Poland, Czech Republic and Hungary in focus

"With sentiment improving into the end of last week but Middle East headlines remaining mixed over the weekend, we expect a cautious start to trading in CEE today."

"Recent sessions have seen a notable pullback in rate hike pricing in Poland and the Czech Republic (now down to around two hikes on average), while Hungary has seen easing expectations extend to nearly five cuts."

"In our view, there is still room for more dovish pricing in Hungary, but only limited scope for further repricing in Poland and the Czech Republic, where around 1.5 hikes looks like a floor for the current rally."

"EUR/PLN and EUR/CZK are trading near the lower ends of their recent 4.225-260 and 24.260-360 ranges respectively, but neither pair offers a compelling stronger-conviction story at this stage."

"While the positive momentum should persist despite stretched long positioning, any further HUF gains are likely to be more gradual, with 350 in EUR/HUF still our mid-year target."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD hits three-week highs past 0.7000

Finally, AUD/USD has managed to reclaim the key 0.7000 yardstick on Tuesday. Indeed, the pair clinched its third day in a row of gains, following the persistent correction in the Greenback amid the generalised improvement in the risk-linked galaxy.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold just failed at $4,150. This is the next stop

Gold prices trade without a clear direction on Tuesday, hovering around the $4,170 region per troy ounce and still struggling to regain upside traction following Monday’s pullback. In the meantime, lower US Treasury yields and a marked pullback in the US Dollar come in tandem with the yellow metal’s price action.

Dogecoin Price Forecast: DOGE struggles below key moving average resistance

Dogecoin (DOGE) is trading marginally above $0.0800 on Tuesday, up 1% on the day, against lows around $0.0785. The meme coin is cautiously navigating a broader lethargic cryptocurrency market where Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) are struggling to gain momentum.

Markets at a turning point: Bitcoin, Gold, FX and Tech react to a heavy macro week

The new trading week opens with a mixed but revealing picture across global markets. Indices, commodities, FX, tech stocks, and cryptocurrencies are all sending one message: risk appetite is alive, but it is cautious, selective, and highly sensitive to macro signals.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.