The cross saw its downside renewed after the NBH surprised markets by lowering its refi rate to 1.80% from 1.95% in today’s meeting. Recall that market consensus was expecting the central bank to remain on hold.
The cross is retreating for the second consecutive session so far, trading in 5-day lows near the 297.00 handle.
EUR/HUF key levels
At the moment the cross is losing 0.27% at 297.25 with the next support at 296.74 (low Jan.2 2014) ahead of 295.29 (low Apr.15) and then 295.17 (low Dec.31 2013). On the upside, a break above 300.49 (high Apr.6) would expose 301.98 (high Apr.20) and finally 302.64 (high Apr.17).