By Anita Komuves
BUDAPEST, July 17 (Reuters) - Central European currencies were looking for direction and stocks were down on Friday before a European Union summit to discuss a 750 billion-euro coronavirus recovery fund.
Opposition from the Netherlands and the threat of a Hungarian veto weighed on chances of a deal.
The Hungarian forint EURHUF= was down 0.16% and trading at 354.05 to the euro, in a range where it has been stuck for weeks.
"The next impetus will come from the central bank's rate meeting next Tuesday," Equilor said in a note.
The bank is expected to cut its base rate by 15 basis points to 0.6% at the meeting, according to Reuters poll of analysts.
"This new 15 basis point rate cut has already been priced in by markets," CIB Bank wrote in a note. "If the bank confirms after Tuesday's meeting that no more easing is to be expected for the time being, then the effect on the forint could be modest."
Elsewhere, higher-than-expected inflation was expected by analysts to influence FX markets.
Czech consumer prices rose 3.3% year-on-year in June, above the central bank's target of 2% with a 1 percentage-point tolerance band.
Komercni Banka said that the crown could resume strengthening as market rates rise, since higher-than-expected inflation data last week led investors to scale back bets on a rate cut.
The crown EURCZK= was little changed on Friday, trading at 26.690 to the euro. The Polish zloty EURPLN= was unchanged at 4.479 versus the euro.
Polish net inflation rose to 4.1% year on year in June, above the NBP's upper tolerance limit of 3.5%.
"A high inflation rate makes the real interest rate more negative and if this does not change, it will hurt the zloty," Commerzbank wrote in a note.
Stocks in the region slid, with Warsaw's equities .WIG20 down 0.6%, Budapest .BUX losing 0.5% and Prague .PX easing 0.3%. Bucharest's stocks .BETI edged up 0.08%.
AT 1016 CET
Note: daily change
Note: FRA quotes
are for ask prices
(Additional reporting by Jason Hovet in Prague, editing by Larry King)
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