CEE MARKETS-Currencies up as markets eye Hungary cenbank, Fed
Band Anita Komuves
BUDAPEST, July 25 (Reuters) – Central European currencies strengthened on Monday as investors awaited interest rate decisions from the US and Hungarian central banks as well as Polish economic data due later this week.
“The forint is rising slightly ahead of tomorrow’s rate meeting, and I expect a calm day today,” said an FX trader in Budapest.
“Foreign investor sentiment on the forint has turned somewhat positive since the central bank’s aggressive rate hikes, despite the risks posed by the lack of agreement with the EU on stimulus funds.”
Rating agency Fitch confirming Hungary’s rating at “BBB” with a stable outlook on Friday evening also helped the forint, wrote Andras Horvath, senior analyst at Takarekbank.
the forint EURHUF= firmed 0.06% to 396.80 per euro ahead of Tuesday’s central bank meeting where a Reuters poll of analysts expects the base rate to rise 100 basis points to 10.75%.
The National Bank of Hungary (NBH), which became the first central bank in the European Union to start raising interest rates in June 2021, has raised its key rate by more than 900 basis points since then.
Although it rebounded from a record low of 416.90 for the euro hit earlier this month, the forint is still the worst performer in the region as it has fallen nearly 7% since the start of the year .
The Polish zloty EURPLN= was 0.37% stronger and traded at 4.7270 per euro.
“Undoubtedly, the most important event of the coming week will be the US Federal Reserve meeting,” wrote Poland’s Bank Millennium.
“For the zloty, however, the national CPI inflation data will also be important. It will be a clue as to the possible decision of the Monetary Policy Council at the September meeting.”
The US Federal Reserve was due to announce its interest rate decision on Wednesday, with investors bracing for a 75 basis point hike.
The Czech crown EURCZK= traded up 0.35% at 24.50 per euro, trailing its regional peers.
“The relief of knowing that the majority of renewed [central bank] the board’s plans to continue interventions to support the corona temporarily helped calm the market,” CSOB wrote in a client note.
The Czech National Bank is due to meet on August 4.
CEE MARKETS
INSTANTANEOUS
At 10:13 a.m. CET
CURRENCIES
Last
Previous
Daily
To change
offer
close
change
in 2022
EURCZK=
Czech koruna
EURCZK=
24.5000
24.5850
+0.35%
+1.52%
EURHUF=
Hungarian forint
EURHUF=
396.8000
397.0500
+0.06%
-6.91%
EURPLN=
polish zloty
EURPLN=
4.7270
4.7445
+0.37%
-2.88%
EURRON=
lei in Romanian
EURRON=
4.9310
4.9325
+0.03%
+0.35%
EURHRK=
Croatian kuna
EURHRK=
7.5220
7.5245
+0.03%
-0.06%
EURRSD=
Serbian dinar
EURRSD=
117.3500
117.3600
+0.01%
+0.20%
Note: daily change
calculated from
1800 CET
Last
Previous
Daily
To change
close
change
in 2022
.PX
prague
.PX
1240.37
1238.0500
+0.19%
.BUX
Budapest
.BUX
41792.46
42327.67
-1.26%
-17.60%
.WIG20
Warsaw
.WIG20
1692.45
1701.73
-0.55%
-25.34%
.BETI
Bucharest
.BETI
12226.34
12229.55
-0.03%
-6.39%
.SBITOP
Ljubljana
.SBITOP
1126.75
1122.59
+0.37%
-10.25%
.CRBEX
Zagreb
.CRBEX
1960.72
1963.49
-0.14%
-5.71%
.BELEX15
Belgrade
.BELEX15
840.72
841.39
-0.08%
+2.43%
.SOFIX
Sofia
.SOFIX
600.90
600.63
+0.04%
-5.47%
Yield
Yield
Spread
Daily
(offer)
change
vs. Bunds
to change
Czech Republic
spread
CZ2YT=RR
2 years
CZ2YT=RR
6.4500
0.0490
+601 basis points
-1bps
CZ5YT=RR
5 years
CZ5YT=RR
5.1330
-0.0430
+435 basis points
-7bps
CZ10YT=RR
10 years
CZ10YT=RR
4.4260
-0.0210
+339 basis points
-4bps
Poland
PL2YT=RR
2 years
PL2YT=RR
6.9420
-0.0880
+650 basis points
-15bps
PL5YT=RR
5 years
PL5YT=RR
6.1840
-0.0290
+540bps
-6bps
PL10YT=RR
10 years
PL10YT=RR
5.9050
-0.0050
+487 basis points
-2bps
FORWARD
3×6
6×9
9×12
3M interbank
Czech Republic
CZKFRAPRIBOUR=
7.59
7.57
7.26
7.33
Hungary
OYSTERBUBOR=
1:31 p.m.
1:38 p.m.
1:40 p.m.
11.58
Poland
PLNFRAWIBOR=
7.37
7.60
7.51
7.00
Note: ENG Quotes
are for asking prices
************************************************** **** ***********
(Additional reporting by Anna Wlodarczak-Semczuk in Warsaw and Jason Hovet in Prague; Editing by Vinay Dwivedi)
((komuves.anita@thomsonreuters.com)(+36 70 795 8815))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.