CEE MARKETS-Currencies in holding pattern before U.S. inflation data
14/09/2021 09:58
PRAGUE, Sept 14 (Reuters) - Central European currencies were
caught in a holding pattern on Tuesday as global markets awaited
key U.S. inflation data, with the Hungarian forint and Czech
crown retaining recent gains.
Hungary's central bank said on Monday it would scrap its
swap tender providing forint liquidity and hold an additional
tender to provide euro liquidity to the banking system on
Wednesday, giving the forint a boost. urn:newsml:reuters.com:*:nS8N2L1089
The forint EURHUF= mostly held onto those gains on
Tuesday, sticking on the strong side of the psychological 350
per euro level. It traded at 349.60, up 0.2%, at 0836 GMT.
The forint and crown have outpaced gains by peers in central
Europe so far this year, with their respective central banks
both in policy tightening mode since June.
In the Czech Republic, market speculation has shifted to
whether the central bank may opt for a steeper 50 basis point
rate hike when it next meets at the end of September. The
central bank has so far delivered two 25 basis point hikes.
On Tuesday, Czech central banker Vojtech Benda, who has
backed a heftier 50 basis point hike at the last two meetings,
told Czech Radio his position had not softened, with data last
week showing inflation had hit a 13-year high. urn:newsml:reuters.com:*:nL8N2QG18Z
The crown EURCZK= inched down 0.1% to 25.38 to the euro
and was off a three-month high hit last week after the latest
inflation data.
In Poland, the zloty EURPLN= also dipped 0.1%, with little
impulse. It has lost 0.7% this month.
"Investors' attention will focus on the U.S. inflation
reading, which is likely to confirm continued high price
pressures, although this should not advance the timing of the
Fed's monetary policy normalisation," Bank Millennium said.
"Space for further weakening of the zloty is small."
Elsewhere, stock markets were mixed, with Budapest .BUX
and Warsaw .WIG20 softening.
Prague .PX was held higher by gains for utility CEZ
CEZP.PR and MONETA Money Bank MONET.PR and Komercni Banka
BKOM.PR after the latter two got regulator clearance to pay a
scaled-back dividend. urn:newsml:reuters.com:*:nL8N2QF43Y urn:newsml:reuters.com:*:nL8N2QF23N
CEE SNAPSHO AT
MARKETS T 1036
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2021
EURCZK Czech
EURHUF Hungary 0 0
EURPLN Polish
EURRON Romanian
EURHRK Croatian
EURRSD Serbian 0 0
Note: calcula 1800
daily ted CET
change from
STOCKS
Latest Previou Daily Change
s
close change in 2021
.PX Prague .PX 1292.65 1288.89 +0.29% +25.85
00 %
.BUX Budapest .BUX 52789.4 52922.7 -0.25% +25.37
7 2 %
.WIG20 Warsaw <.WIG20 2363.96 2387.74 -1.00% +19.15
> %
.BETI Buchares .BETI 12294.3 12327.5 -0.27% +25.38
t 4 8 %
.SBITO Ljubljan <.SBITO 1180.11 1178.66 +0.12% +31.00
P a P> %
.CRBEX Zagreb <.CRBEX 1967.69 1968.71 -0.05% +13.13
> %
.BELEX Belgrade <.BELEX 805.44 808.25 -0.35% +7.59%
15 15>
.SOFIX Sofia <.SOFIX 565.77 565.83 -0.01% +26.42
> %
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year s
CZ5YT= 5-year s
CZ10YT s
Poland
PL2YT= 2-year s
PL5YT= 5-year s
PL10YT s
FRA
3x6 6x9 9x12 3M
interba
nk
Czech
Hungary
Poland
Note: FRA quotes
are for ask
prices
***********************************
***************************
(Reporting by Jason Hovet in Prague, Alicja Ptak in Warsaw and
Gergely Szakacs in Budapest; Editing by Alexander Smith
)
((jason.hovet@thomsonreuters.com))
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