CEE MARKETS-CEE mixed, crown firms as market awaits easing halt for now

Credit: REUTERS/DAVID W CERNY

Central European currencies were mixed early on Wednesday, with the Czech crown slightly firmer ahead of a central bank meeting in which the base rate is expected to be kept flat as the market eyes a temporary halt of monetary easing.

By 0820 GMT, the crown EURCZK= gained 0.2% to trade at trading at 26.970.

"We do not expect an immediate reaction on the part of the CNB today, but we assume that the central bank will keep a close eye on the government's future measures and, if necessary, will take action ... as it had already done in the spring," said Commerzbank analysts.

The crown eased by 3% since the start of the month, "thus coming in right at the bottom of the list of the Eastern European currencies. We expect the crown to remain under pressure for now," they added.

The Polish zloty EURPLN= and the Romanian leu EURRON= were little changed at 4.4883 and 4.8640 respectively.

The Hungarian forint EURHUF= eased marginally 0.02% and was trading at 363.75, extending losses from the start of the week when it plunged to a five-month low in global risk-off mood.

The currency temporarily firmed before falling back to Tuesday's levels after the central bank left rates unchanged and deputy governor Barnabas Virag said the bank is ready to use its tools if justified by the inflation outlook.

"If the exchange rate of the forint weakens further, then, based on the comments of the central bank we expect a temporary rate hike at the one-week deposit tender, trying to stabilize the market," said David Nemeth, senior analyst at K&H Bank.

CEE MARKETS

SNAPSHOT

AT 1058 CET

CURRENCIES

Latest

Previous

Daily

Change

bid

close

change

in 2020

Czech crown

EURCZK=

26.9850

27.0230

+0.14%

-5.76%

Hungary forint

EURHUF=

363.8000

363.6900

-0.03%

-8.98%

Polish zloty

EURPLN=

4.4877

4.4907

+0.07%

-5.15%

Romanian leu

EURRON=

4.8640

4.8615

-0.05%

-1.56%

Croatian kuna

EURHRK=

7.5470

7.5465

-0.01%

-1.35%

Serbian dinar

EURRSD=

117.5000

117.6000

+0.09%

+0.06%

Note: daily change

calculated from

1800 CET

Latest

Previous

Daily

Change

close

change

in 2020

Prague

.PX

869.12

868.0500

+0.12%

-22.10%

Budapest

.BUX

32674.29

32296.74

+1.17%

-29.10%

Warsaw

.WIG20

1698.06

1693.09

+0.29%

-21.02%

Bucharest

.BETI

9016.05

9019.56

-0.04%

-9.63%

Ljubljana

.SBITOP

834.84

833.14

+0.20%

-9.83%

Zagreb

.CRBEX

1631.09

1619.00

+0.75%

-19.15%

Belgrade

.BELEX15

686.26

692.62

-0.92%

-14.40%

Sofia

.SOFIX

425.24

423.59

+0.39%

-25.15%

Yield

Yield

Spread

Daily

(bid)

change

vs Bund

change in

Czech Republic

spread

2-year

CZ2YT=RR

0.0950

-0.0300

+081bps

-2bps

5-year

CZ5YT=RR

0.5380

-0.0260

+126bps

-2bps

10-year

CZ10YT=RR

0.8730

-0.0140

+139bps

+1bps

Poland

2-year

PL2YT=RR

0.0800

-0.0050

+079bps

+0bps

5-year

PL5YT=RR

0.6360

-0.0300

+136bps

-2bps

10-year

PL10YT=RR

1.3210

-0.0150

+184bps

+1bps

FORWARD

3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

0.32

0.33

0.35

0.34

Hungary

HUFFRABUBOR=

0.81

0.90

0.97

0.63

Poland

PLNFRAWIBOR=

0.20

0.18

0.18

0.22

Note: FRA quotes

are for ask prices

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

(Additional reporting by Anita Komuves in Budapest and Jason Hovet in Prague; Editing by Ramakrishnan M.)

((radu.marinas@thomsonreuters.com; +40 21 527 04 33))

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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