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Czech crown eases towards six-month low, regional peers stable


Reuters


PRAGUE, Aug 12 (Reuters) - The Czech crown weakened towards a six-month low on Monday, shrugging off a surprise acceleration of price growth at home, while its regional peers traded without significant changes.

The crown was 0.1% down against the euro at 25.850, falling for a fourth straight session and nearing the level of 25.875 which would be its weakest since Feb. 12.

The Czech currency is also weaker than the average 25.40 forecast by the Czech National Bank for the current quarter.

However, analysts do not expect the central bank to react by tightening monetary policy, as they forecast inflation to slow down and also because of easing by the European Central Bank and the Federal Reserve in the United States.

"We do not expect the CNB to hike rates. The risks to future inflation development are tilted rather towards a steep decline, in connection with a more significant weakening of foreign demand due to the rising threat of a disorderly Brexit and an escalation of trade wars," said Patrik Rozumbersky, economist at UniCredit.

Elsewhere, Poland's zloty and Hungary's forint were trading flat.

Equity indexes in Prague and Budapest were up by around 0.5%, as European shares bounced back after a tumultuous week dominated by U.S.-China trade tensions and Italy's political turmoil. Going in the opposite direction, the Warsaw stock exchange's main index was down 0.3%.

CEE MARKETS

SNAPSHOT

AT 1059 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2019

EURCZK=

Czech crown

25.8550

25.8355

-0.08%

-0.57%

EURHUF=

Hungary forint

324.6500

324.5950

-0.02%

-1.10%

EURPLN=

Polish zloty

4.3265

4.3254

-0.03%

-0.85%

EURRON=

Romanian leu

4.7248

4.7251

+0.01%

-1.50%

EURHRK=

Croatian kuna

7.3900

7.3895

-0.01%

+0.27%

EURRSD=

Serbian dinar

117.5000

117.6000

+0.09%

+0.68%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2019

.PX

Prague

1027.84

1022.6700

+0.51%

+4.18%

.BUX

Budapest

40831.90

40615.42

+0.53%

+4.33%

.WIG20

Warsaw

2122.16

2127.61

-0.26%

-6.79%

.BETI

Bucharest

9096.67

9146.51

-0.54%

+23.20%

.SBITOP

Ljubljana

856.74

857.01

-0.03%

+6.53%

.CRBEX

Zagreb

1902.56

1899.04

+0.19%

+8.79%

.BELEX15

Belgrade

743.22

746.16

-0.39%

-2.42%

.SOFIX

Sofia

583.79

583.63

+0.03%

-1.79%

BONDS

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

CZ2YT=RR

2-year

0.9910

0.0240

+187bps

+3bps

CZ5YT=RR

5-year

0.8070

0.0780

+167bps

+9bps

CZ10YT=RR

10-year

0.9920

0.0350

+158bps

+5bps

Poland

PL2YT=RR

2-year

1.5640

0.0010

+244bps

+1bps

PL5YT=RR

5-year

1.7710

0.0060

+264bps

+2bps

PL10YT=RR

10-year

1.9490

-0.0020

+254bps

+1bps

FORWARD

RATE

AGREEMENT

3x6

6x9

9x12

3M interbank

Czech Rep

1.98

1.81

1.62

2.14

Hungary

0.29

0.31

0.32

0.00

Poland

1.73

1.67

1.64

1.72

Note: FRA quotes

are for ask prices






This article appears in: Politics , Stocks , World Markets , Economy



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