# Hungarian Forint Holds Firm Against Euro Near Key Resistance Levels

> The Hungarian Forint remains resilient against the Euro amid expectations of further interest rate cuts by the central bank.

**Type:** article · **Category:** Market · **Published:** 2026-08-25 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/hungarian-forint-men-sthirata-euro-ke-khilapha-majabuta-rejistensa-21779 · **Language:** English
**Tags:** Hungarian Forint, Euro, Interest Rates, Forex, Inflation

Across Central and Eastern Europe, the Magyar Nemzeti Bank is widely projected to deliver its fourth 25 basis point interest rate cut of the year, which would bring the base rate down to 5.50 percent. Dovish minutes from the July policy meeting alongside a lower-than-forecast July inflation rate of 1.2 percent year-on-year have cleared the path for at least two additional reductions, as Governor Varga noted back in June.

Economic research teams project inflation to settle at 1.5 percent in 2026 and 2.4 percent in 2027, with monetary policy easing anticipated to reach 5.00 percent by the end of 2026 and 4.00 percent by the close of 2027.

## Technical Levels and Resistance for EUR/HUF
This dovish setup implies that any hawkish pushback from policymakers could cause the EUR/HUF exchange rate to drift back toward the 360 region, near the 100-day moving average. The currency pair has staged a steady technical rebound after carving out an interim low around the 348 mark in June. Having encountered strong overhead resistance near the late-April peak of 368, the pair appears to be forming a solid base, although definitive signals of a large upward breakout are not yet visible on charts.

The 200-day moving average, situated around 371, is positioned to act as a short-term hurdle. A decisive break above this barrier is required to confirm an extended recovery. Meanwhile, the recent pivot low at 359 to 358 serves as the initial support level. A breakdown below this threshold could reignite the broader downward trend.

## Broader Foreign Exchange and Commodity Market Movements
In other currency markets, the GBP/USD pair pushes higher toward the 1.3650 region during the European trading session. The recovery in the US Dollar has begun to falter despite new US sanctions imposed on Iran, as renewed hopes for diplomatic resolution emerge following reports that Pakistan is delivering a proposal to halt the regional standoff and lift sanctions under a memorandum of understanding.

Simultaneously, the EUR/USD pair recovers ground toward 1.1700 in European trade. The pair draws support as the greenback loses momentum amid fresh Middle East diplomacy hopes, alongside an upbeat German IFO Survey that aids Euro bulls. Gold remains under pressure below the $4,650 mark through the early European session, though the absence of follow-through selling suggests caution before traders position for a deeper retracement from the $4,700 neighborhood touched earlier in the session.

Bitcoin extends its upward momentum, trading above $80,000 following its most powerful weekly surge in over three years. Strong institutional demand continues to anchor this rally, bolstered by positive inflows into spot Exchange Traded Funds. Across Asian markets, directionless trading persists for a second consecutive session as investors await further clarity regarding Iran and Federal Reserve policy outlooks.

## US Treasury Liquidity Support Operations
The US Treasury announced adjustments to its operational calendar, stating it will double the maximum size of liquidity support buyback operations across the 10-year to 20-year and 20-year to 30-year sectors. The ceiling will be lifted from $2 billion per operation to a minimum of $4 billion, taking effect from September 9 through November 4.

Market commentary and financial information provided across these platforms involve forward-looking statements subject to inherent risks and uncertainties. Instruments profiled are strictly for educational and informational purposes and do not constitute financial advice or an endorsement to trade. Investors are advised to perform comprehensive due diligence before executing any market transactions.

## What this means for you
**Market Impact:** Fluctuations in currency pairs and commodity valuations may influence international trading strategies and investor sentiment.

## Questions & Answers

### 1. What is the expected interest rate cut by the Hungarian central bank?
The Magyar Nemzeti Bank is widely expected to deliver its fourth 25 basis point rate cut of the year, lowering the base rate to 5.50 percent.

### 2. What is the initial support level for the EUR/HUF currency pair?
The recent pivot low at 359 to 358 serves as the first support level for the EUR/HUF pair.

### 3. At what level is Bitcoin trading?
Bitcoin is trading above the $80,000 mark following its strongest weekly rally in over three years.

### 4. What adjustment did the US Treasury make regarding liquidity buybacks?
The US Treasury announced it would double the maximum size of liquidity support buyback operations from $2 billion to at least $4 billion per operation.

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