Credit: REUTERS/DAVID W CERNYPRAGUE, July 27 (Reuters) - Central Europe's currencies firmed to multi-week highs on Monday, with the Czech crown at its strongest since mid-March as a weaker dollar boosted the market.
Currencies kept up gains seen since last week, lifted by a spike in the euro - the region's main reference currency - against the dollar, dealers said.
The crown firmed to its strongest against the euro since March 13, when the novel coronavirus outbreak started hammering central European markets. However, some dealers said more resistance could be seen ahead at current levels.
The crown EURCZK= traded up 0.25% at 26.203 to the euro at 0921 GMT, while the Polish zloty EURPLN= led gains with a 0.3% rise and was at 4.4007 to the euro after earlier touching 4.4000, its highest since June 3.
"Euro/dollar is on the top, gold is on the top. I don't think there is too much space for a bigger move (from here)," a Prague-based dealer said.
Stocks and currencies in the region were lifted last week by the European Union's 750-billion-euro coronavirus recovery package, which would see healthy portions sent to Poland, Hungary and Romania.
The Hungarian forint EURHUF= gained 0.2% to 345.90 to the euro, having firmed past key levels last week. Equilor analysts said the 342-343 level, at which the forint last traded in the first half of June, would be the next key point.
The region's stock markets moved mostly sideways, with Warsaw .WIG20 and Prague .PX up as much as 0.25% and Budapest .BUX down 0.2%.
Debt markets were mixed. Fitch ratings agency affirmed the Czech Republic at 'AA-' on Friday evening and left a stable outlook.
Raiffeisen said though that S&P's downgrade for Slovakia to a negative outlook could put pressure on the rest of the region.
CEE MARKETS
SNAPSHOT
AT 1121 CET
CURRENCIES
Latest
Previous
Daily
Change
bid
close
change
in 2020
EURCZK=
Czech crown
EURCZK=
26.2030
26.2690
+0.25%
-2.94%
EURHUF=
Hungary forint
EURHUF=
345.9000
346.4800
+0.17%
-4.27%
EURPLN=
Polish zloty
EURPLN=
4.4007
4.4147
+0.32%
-3.28%
EURRON=
Romanian leu
EURRON=
4.8270
4.8315
+0.09%
-0.80%
EURHRK=
Croatian kuna
EURHRK=
7.5160
7.5215
+0.07%
-0.94%
EURRSD=
Serbian dinar
EURRSD=
117.5200
117.6400
+0.10%
+0.04%
Note: daily change
calculated from
1800 CET
STOCKS
Latest
Previous
Daily
Change
close
change
in 2020
.PX
Prague
.PX
917.27
915.8700
+0.15%
-17.78%
.BUX
Budapest
.BUX
35024.96
35107.97
-0.24%
-24.00%
.WIG20
Warsaw
.WIG20
1814.88
1810.33
+0.25%
-15.59%
.BETI
Bucharest
.BETI
8589.19
8551.29
+0.44%
-13.91%
.SBITOP
Ljubljana
.SBITOP
852.08
852.29
-0.02%
-7.97%
.CRBEX
Zagreb
.CRBEX
1587.06
1595.26
-0.51%
-21.33%
.BELEX15
Belgrade
.BELEX15
653.74
663.56
-1.48%
-18.45%
.SOFIX
Sofia
.SOFIX
440.55
440.18
+0.08%
-22.46%
BONDS
Yield
Yield
Spread
Daily
(bid)
change
vs Bund
change in
Czech Republic
spread
CZ2YT=RR
2-year
CZ2YT=RR
0.1250
0.0900
+078bps
+9bps
CZ5YT=RR
5-year
CZ5YT=RR
0.4000
-0.0510
+106bps
-4bps
CZ10YT=RR
10-year
CZ10YT=RR
0.8520
0.0070
+132bps
+3bps
Poland
PL2YT=RR
2-year
PL2YT=RR
0.1290
-0.0030
+078bps
-1bps
PL5YT=RR
5-year
PL5YT=RR
0.7590
-0.0110
+142bps
+0bps
PL10YT=RR
10-year
PL10YT=RR
1.3620
-0.0070
+183bps
+2bps
FRA
3x6
6x9
9x12
3M interbank
Czech Rep
CZKFRAPRIBOR=
0.31
0.32
0.34
0.34
Hungary
HUFFRABUBOR=
0.60
0.60
0.59
0.60
Poland
PLNFRAWIBOR=
0.20
0.20
0.22
0.25
Note: FRA quotes are for ask prices
**************************************************************
(Reporting by Jason Hovet in Prague and Krisztina Than in Budapest; Editing by Jan Harvey)
((jason.hovet@thomsonreuters.com; +420 234 721 613;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
