CEE MARKETS-FX Firms As Investors Consider Hungarian Rate Hike
[ad_1]
WARSAW, August 24 (Reuters) – Central European currencies strengthened on Tuesday, with the Hungarian forint EURHUF = the biggest winner ahead of a central bank meeting where policymakers are expected to continue a round of tightening they started in June.
The National Bank of Hungary (NBH) was the first in the European Union to start increasing borrowing costs, and it has pledged to “take firm action” to contain higher than expected inflation after raised rates by 30 basis points in July.
Analysts polled by Reuters expect another 30 basis point hike to 1.5% on Tuesday.
âThe move has been fully captured by the markets – in fact, based on 3×6 month futures, another similarly sized step is arguably also taken into account,â Commerzbank wrote in a note.
At 08:34 GMT, the forint strengthened 0.26% against the euro to 349.25. Czech crown EURCZK = was 0.14% firmer at 25.5260 while the Polish zloty EURPLN = changed little at 4.5820.
Unlike the Hungarian and Czech central banks, the National Bank of Poland has so far kept rates unchanged at a record high and the zloty has underperformed its regional peers.
“… The lack of interest rate hikes has been visible in recent weeks when the CZK and HUF have been slightly stronger,” PKO BP said in a note. “Tuesday’s decision by the BNH on interest rates may contribute to a wider spread between these currencies.”
Polish 10-year bond yield PL10YT = RR was little changed at 1.747%, while the Czech 10-year rate CZ10YT = RR fell 2 basis points to 1.821%.
“The likely increase in the main (Hungarian) interest rate by 30 basis points to 1.50% could create short-term pressure on the growth of yield curves in the EEC-3 region,” said PKO BP.
CEEC MARKETS
INSTANTANEOUS
At 1034 CET
COINS
Latest
Previous
Daily
Switch
offer
close
cash
in 2021
EURCZK =
czech crown
EURCZK =
25.5260
25.5610
+ 0.14%
+ 2.75%
EURHUF =
Hungarian forint
EURHUF =
349.2500
350.1500
+ 0.26%
+ 3.86%
EURPLN =
Polish Zloty
EURPLN =
4.5820
4.5843
+ 0.05%
-0.50%
EURRON =
leu in Romanian
EURRON =
4.9290
4.9300
+ 0.02%
-1.30%
EURHRK =
Croatian Kuna
EURHRK =
7.4940
7.4950
+ 0.01%
+ 0.71%
EURRSD =
Serbian dinar
EURRSD =
117.4800
117.5800
+ 0.09%
+ 0.08%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Switch
close
cash
in 2021
.PX
Prague
.PX
1284.88
1283.1000
+ 0.14%
+ 25.09%
.BUX
Budapest
.BUX
51887.08
52023.19
-0.26%
+ 23.23%
.WIG20
Warsaw
.WIG20
2291.19
2287.52
+ 0.16%
+ 15.48%
.BETI
Bucharest
.BETI
12189.82
12167.22
+ 0.19%
+ 24.31%
.SBITOP
Ljubljana
.SBITOP
1193.74
1201.67
-0.66%
+ 32.51%
.CRBEX
Zagreb
.CRBEX
1960.98
1956.26
+ 0.24%
+ 12.75%
.BELEX15
Belgrade
.BELEX15
798.12
800.12
-0.25%
+ 6.61%
.SOFIX
Sofia
.SOFIX
570.56
565.93
+ 0.82%
+ 27.49%
Yield
Yield
Broadcast
Daily
(offer)
cash
against the Bund
switch
Czech Republic
broadcast
CZ2YT = RR
2 years
CZ2YT = RR
1.6640
0.0020
+241 bp
+ 0bps
CZ5YT = RR
5 years
CZ5YT = RR
1.7700
-0.0220
+251 bp
-2bps
CZ10YT = RR
10 years
CZ10YT = RR
1.8210
-0.0200
+ 230bps
-2bps
Poland
PL2YT = RR
2 years
PL2YT = RR
0.3900
-0.0830
+ 114bps
-9bps
PL5YT = RR
5 years
PL5YT = RR
1.0950
-0.0030
+184 bp
+ 0bps
PL10YT = RR
10 years
PL10YT = RR
1.7470
0.0040
+223 bp
+ 1bps
CHEEKY
3×6
6×9
9×12
3M Interbank
Czech Republic
CZKFRAPRIBOR =
1.64
2.08
2.22
0.97
Hungary
HUFFRABUBOR =
2.15
2.25
2.34
1.42
Poland
PLNFRAWIBOR =
0.42
0.65
0.87
0.21
Note: quotes from FRA
are for the asking prices
*************************************************** ************
(Report by Alan Charlish in Warsaw and Anita Komuves in Budapest Editing by Tomasz Janowski)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
[ad_2]