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Hungary HUF Interest Rate May 25 2021

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  • Hungary HUF Interest Rate May 25 2021

    What does the data mean to the market?

    The Hungarian National Bank Monetary Policy Committee's decision on where to set the benchmark interest rate. Traders watch interest rate changes closely as short term interest rates are the primary factor in currency valuation.

    A higher than expected rate is positive/bullish for the HUF - (Hungarian Forint), while a lower than expected rate is negative/bearish for the HUF.

    Historic deviations and their outcome

    June 29 2020 We got a negative -0.15bps (basis points) cut to the interest rate which gave a nice slow move on USDHUF, with many opportunities to enter the market!

    See the price action here
    https://calendarapi.galaxysoftwarein...d2FyZWluYy5jb2 0vIy9jYWxlbmRhcjtpPTE5NjAzO3Q9MjAyMC0wNi0yMztyPU0x

    I will use forecasts of:

    Base Rate Announcement 0.6

    Today's trade plan

    Economists expect a series of rate hikes throughout the rest of 2021, with the first increase of 0.15bps to the interest rate expected to happen in June, followed by 25bps hikes in September and December.
    Today If we see that expected series of increases brought forward, I will take a sell on USDHUF, so I am looking for a +0.15bps increase or more to sell USDHUF (Meaning I'm buying the HUF) and expect some continued HUF Strengthening.

    Tradable pairs

    EURHUF
    USDHUF

    Hope this helps but please do your own analysis!!
    Good luck!!
    James Thatcher

    Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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