CEE MARKETS-FX strengthens amid relief over tariffs, hawkish data

Komercni Banka as

14/02/2025 09:55

By Alan Charlish
       WARSAW, Feb 14 (Reuters) - The Hungarian forint and
Polish zloty firmed on Friday, amid relief that U.S. President
Donald Trump stopped short of immediately implementing new
tariffs and fresh signs that monetary policy in central Europe
will likely remain tight.
    Trump tasked his economics team on Thursday with devising
plans for reciprocal tariffs on every country taxing U.S.
imports.
    However, the directive stopped short of imposing fresh
tariffs, instead kicking off what could be weeks or months of
investigation into the levies imposed on U.S. goods by other
trading partners and then devising a response.
    The Hungarian forint firmed 0.34% versus the euro to 401.20,
its strongest level since late-October, while the Polish zloty
 EURPLN=  was 0.22% firmer at 4.168, hovering near 7-year-highs.
    "(CEE currencies) are pretty strong on the back of the delay
on these tariffs, which pushed the dollar weaker, and so other
currencies are stronger," said a Warsaw-based FX trader.
    "Then we have a chance for some news on the weekend
regarding the (Ukraine) peace plan."
    Ukrainian President Volodymyr Zelenskiy is expected to meet
U.S. Vice President JD Vance in Munich on Friday after Trump
startled U.S. allies by calling Vladimir Putin and announcing
the start of talks to end the war in Ukraine.
    Central European currencies have been supported by signals
from central bankers that they will be cautious about cutting
the cost of credit amid persistently high inflation.
    Hungary's central bank will have to raise its 2025 inflation
forecast after higher-than-expected January figures, the bank's
director, Andras Balatoni, said late on Thursday.
    Meanwhile in Poland, inflation came in above estimates in
January at 5.3% year-on-year, data showed on Friday, while in
Romania it was in line at 4.95%.
    In Romania, investors were looking ahead to a central bank
meeting on Friday that analysts expect will see the cost of
credit remain on hold at 6.5%, the EU's joint-highest level
alongside neighbouring Hungary.
    The Romanian leu  EURRON=  and Czech crown  EURCZK=  were
flat at 4.9769 and 25.0480 respectively.
    
 CEE MARKETS SNAPSHOT AT  0959 CET                    
 
 
 CURRENCIES         Latest   Previou  Daily   Change
                    trade    s close  change  in 2025
                                              
 Czech                                   %  
 Hungary                0        0       %  
 Polish                                  %  
 Romanian                                   
 Serbian                0        0       %  
 Note: daily change calculated from 1800 CET          
 
 
 
 
 
 
 
 STOCKS             Latest   Previou  Daily   Change
                             s close  change  in 2025
                                              
 Prague     .PX     1982.24  1978.50   +0.19   +12.62%
                                  00       %  
 Budapest   .BUX    88430.9  88383.5   +0.05   +11.48%
                          7        8       %  
 Warsaw    <.WIG20  2588.36  2594.92  -0.25%   +18.08%
           >                                  
 Buchares   .BETI   17637.8  17530.0   +0.62    +5.49%
 t                        9        6       %  
 
 
 
 
 
 BONDS              Yield    Yield    Spread  Daily
                    (bid)    change   vs      change
                                      Bund    in
                                              spread
                                              
                                              
 Czech                                 ps  
 2-year                                       
 Czech                                 ps  
 5-year                                       
 Czech                                ps  
 10-year                                      
                                                      
 Poland                                ps  
 Poland                                ps  
 Poland                               ps  
 
 
 
 
 
 
 
 
 
 FORWARD RATE       3x6      6x9      9x12    3M
 AGREEMENTS                                   interban
                                              k
 Czech                                       
                                            
 Hungary                                     
                                             
 Poland                                      
                                             
 Note: FRA quotes are for ask prices                  
 
 
 

    

 (Reporting by Alan Charlish in Warsaw, Gergely Szakacs in
Budapest, Luiza Ilie in Bucharest; Editing by Shailesh Kuber)
 ((alan.charlish@thomsonreuters.com;))
 
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