CEE MARKETS-CEE FX trades rangebound, Czech crown recovers marginally

Credit: REUTERS/DAVID W CERNY

Central European currencies were mixed on Tuesday, trading in narrow ranges in the summer lull, with the Czech crown recovering slightly after nearing a six-month low the previous session.

By 0910 GMT, the Czech currency traded a tad firmer on the day at 25.830 to the euro, but softer than the 25.40 average forecast by the Czech National Bank for the current quarter. Poland's zloty EURPLN= and Hungary's forint EURHUF= were trading flat.

The Polish zloty EURPLN= and the Romanian leu edged down about 0.1%. The Hungarian forint EURHUF= was flat at 324.12 to the euro.

"Only a large deviation from [the]expected U.S. inflation reading can cause volatility, as lower than expected data can fuel expectations for a deeper monetary easing by the Fed. If the (US) inflation will be higher than expected, the reaction will be rather small, because… it will not change expectations for the prospects for monetary policy in the USA," said Millennium Bank analysts.

The Federal Reserve Bank of New York's survey of consumer expectations showed that people's average outlooks for US inflation declined over both one- and three-year time horizons. Uncertainty about inflation also fell.

Stock exchange indexes in Prague .PX, Budapest .BUX and Warsaw .WIG20 were down around 0.5%, while Bucharest was 0.2% up on the day.

CEE MARKETS

SNAPSHOT

AT 1123 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2019

Czech crown

EURCZK=

25.8350

25.8420

+0.03%

-0.50%

Hungary forint

EURHUF=

324.0600

324.1900

+0.04%

-0.92%

Polish zloty

EURPLN=

4.3340

4.3280

-0.14%

-1.02%

Romanian leu

EURRON=

4.7260

4.7235

-0.05%

-1.52%

Croatian kuna

EURHRK=

7.3930

7.3893

-0.05%

+0.23%

Serbian dinar

EURRSD=

117.6500

117.6400

-0.01%

+0.55%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2019

Prague

.PX

1025.42

1030.6700

-0.51%

+3.94%

Budapest

.BUX

40593.12

40891.99

-0.73%

+3.72%

Warsaw

.WIG20

2097.55

2109.73

-0.58%

-7.87%

Bucharest

.BETI

9126.19

9100.65

+0.28%

+23.60%

Ljubljana

.SBITOP

858.03

859.70

-0.19%

+6.69%

Zagreb

.CRBEX

1893.10

1894.12

-0.05%

+8.25%

Belgrade

.BELEX15

744.86

743.43

+0.19%

-2.21%

Sofia

.SOFIX

581.83

581.90

-0.01%

-2.12%

BONDS

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

2-year

CZ2YT=RR

1.1020

0.1390

+197bps

+16bps

5-year

CZ5YT=RR

0.6910

-0.0170

+156bps

-1bps

10-year

CZ10YT=RR

0.9610

-0.0100

+157bps

+0bps

Poland

2-year

PL2YT=RR

1.5290

-0.0320

+240bps

-2bps

5-year

PL5YT=RR

1.7340

-0.0130

+260bps

-1bps

10-year

PL10YT=RR

1.8890

-0.0240

+250bps

-1bps

FORWARD

RATE

AGREEMENT

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

2.00

1.81

1.62

2.14

Hungary

HUFFRABUBOR=

0.29

0.30

0.31

0.26

Poland

PLNFRAWIBOR=

1.70

1.66

1.59

1.72

Note: FRA quotes

are for ask prices

**************************************************************

(Reporting by Radu Marinas and Alicja Ptak; Editing by Alexandra Hudson)

((radu.marinas@thomsonreuters.com; +40 21 527 04 33; Reuters Messaging: radu.marinas.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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