Economic news

FX Mixed ahead of Polish C.Bank Governor's Press Conference

WARSAW Dec 9 (Reuters) - Central European currencies were mixed on Thursday, as focus turned to policy tightening in Hungary and a press conference with the governor of Poland's central bank, after it hiked rates lesser than many investors had hoped for.

The National Bank of Poland (NBP) hiked its main interest rate by 50 basis points to 1.75% on Wednesday, a move that was in line with the expectations of economists polled by Reuters, but which fell short of what markets had priced in.

"A small part of the market was expecting 75 basis points, a more aggressive move, and as it did not happen the zloty weakened," said Mateusz Sutowicz, a financial market analyst at Bank Millennium in Warsaw.

The zloty was 0.18% weaker against the euro at 4.6243 at 0920 GMT. Polish Central Bank Governor Adam Glapinski will hold a press conference at 1400 GMT, with markets looking for signs of the extent of further tightening.

The Hungarian forint was a touch firmer at 366.00 after the Hungarian central bank raised its one-week deposit rate by 20 basis points to 3.3% at its weekly tender, continuing a series of interest rate hikes as it tries to curb inflation. 

"The rise of the one-week rate was already priced in and has helped the forint before it was announced," an FX trader in Budapest said.

"The forint firmed back from levels near 369 yesterday afternoon, however, the main factor in that was the Polish rate hike that was not as high as some expected. That hurt the zloty and the forint could profit from that."

The central bank is expected to continue its rate hikes on Tuesday at its rate-setting meeting where a Reuters poll of analysts expect the base rate to be hiked by another 30 basis points to 2.4%. 

The Czech crown was 0.12% stronger at 25.45, gaining before CPI data on Friday likely to show the headline inflation rate—already at a 13-year high—rising above 6%.

   

CEE MARKETS

SNAPSHOT

AT 1020 CET

   
     

CURRENCIES

     
     

Latest

Previous

Daily

Change

     

bid

close

hm

in 2021

EURCZK=

Czech crown

 

25.4500

25.4800

+0.12%

+3.06%

EURHUF=

Hungary forint

 

365.8600

366.0000

+0.04%

-0.86%

EURPLN=

Polish zloty

 

4.6243

4.6159

-0.18%

-1.41%

EURRON=

Romanian leu

 

4.9486

4.9490

+0.01%

-1.69%

EURHRK=

Croatian kuna

 

7.5240

7.5245

+0.01%

+0.31%

EURRSD=

Serbian dinar

 

117.5300

117.5800

+0.04%

+0.03%

 

Note: daily change

calculated from

 

1800 CET

 
             
     

Latest

Previous

Daily

Change

       

close

change

in 2021

.PX

Prague

(.PX)

1406.60

1398.8400

+0.55%

+36.94%

.BUX

Budapest

(.BUX)

51354.43

51261.63

+0.18%

+21.96%

.WIG20

Warsaw

(.WIG20)

2230.15

2219.62

+0.47%

+12.41%

.BETI

Bucharest

(.BETI)

12643.13

12598.44

+0.35%

+28.94%

.SBITOP

Ljubljana

(.SBITOP)

1234.34

1226.81

+0.61%

+37.02%

.CRBEX

Zagreb

(.CRBEX)

1999.00

1995.79

+0.16%

+14.93%

.BELEX15

Belgrade

(.BELEX15)

823.42

833.75

-1.24%

+9.99%

.SOFIX

Sofia

(.SOFIX)

619.34

621.73

-0.38%

+38.39%

             
     

Yield

Yield

Spread

Daily

     

(bid)

change

vs Bund

change in

 

Czech Republic

       

spread

CZ2YT=RR

2-year

 

2.7910

-0.0470

+348bps

-4bps

CZ5YT=RR

5-year

 

2.5620

0.0080

+313bps

+3bps

CZ10YT=RR

10-year

 

2.4500

0.0140

+279bps

+4bps

 

Poland

         

PL2YT=RR

2-year

 

2.7320

-0.0440

+342bps

-3bps

PL5YT=RR

5-year

 

3.1580

0.0050

+373bps

+3bps

PL10YT=RR

10-year

 

3.0640

-0.0630

+340bps

-4bps

   

FORWARD

       
     

3x6

6x9

9x12

3M interbank

 

Czech Rep

 

3.97

3.94

3.79

3.22

 

Hungary

 

4.59

4.72

4.71

3.52

 

Poland

 

2.96

3.10

3.06

2.27

 

Note: FRA quotes

are for ask prices

     
 

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

 

Reporting by Alan Charlish in Warsaw, Anita Komuves in Budapest and Jason Hovet in Prague; Editing by Amy Caren Daniel

Source: Reuters


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