CEE MARKETS-Zloty down ahead of cbank decision, wage data support the Czech crown

OTP Bank Nyrt.

04/06/2024 09:37

WARSAW, June 4 (Reuters) - The Polish zloty weakened on
Tuesday as the central bank starts a two-day meeting on interest
rates, while the Czech crown was stable as quarterly wage data
supported the view that the central bank will be cautious in
cutting rates further. 
    The Polish zloty  EURPLN=  was down 0.3% at 4.2870 per euro
at 0748 GMT. 
    Markets expect Polish rate-setters to keep the main interest
rate unchanged at 5.75% for the eighth month in a row in June,
but will keep an eye on the central bank's statement and its
governor's press conference on Thursday. 
    Analysts said the zloty was mostly under the influence of
global sentiment.
    "In our opinion, Tuesday on the domestic currency market
should not bring any major movements in the EUR/PLN, which are
stuck around the level of 4.2850, waiting for the next days'
impulses, i.e. the result of the European Central Bank meeting
or macro data from the US," Bank Millennium analysts said.
    Meanwhile the Czech crown  EURCZK=  was stable at 24.6680
after data showed average wages grew by 4.8% year-on-year in
real terms in the first quarter, the first increase in over two
years as inflation eased back.
    "For the central bank, it is another argument for proceeding
cautiously with rate cuts," Creditas Banka chief economist Petr
Dufek said.
    The Hungarian forint  EURHUF=  was slightly down at 390.80
per euro after the statistics office confirmed first quarter GDP
growth at 1.1% compared to the previous year. 
    "The forint firmed back yesterday due to a weakening of the
dollar, today we expect it to trade amid small interest between
389.5 and 392.5," a local trader said. 
    "The (European) elections during the weekend and Hungary's
EU policy will steer the currency in the near future." 
    Stock markets in Central Europe were mostly down, with
Warsaw  .WIG20  leading losses with a fall of 0.8%.
    
    
                   CEE       SNAPSHO   AT                       
                   MARKETS   T        0948 CET           
                             CURRENC                            
                             IES                         
                             Latest   Previous  Daily    Change
                             bid      close     change   in 2024
 EURCZK=  Czech                                         
 EURHUF=  Hungary                 0                     
 EURPLN=  Polish                                        
 EURRON=  Romania                                       
                                                                
          Note:    calculat                     1800            
          daily    ed from                      CET      
          change                                         
                                                                
                             Latest   Previous  Daily    Change
                                      close     change   in 2024
 .PX      Prague    .PX      1548.04  1552.370   -0.28%   +9.48%
                                             0           
 .BUX     Budapes   .BUX     69361.7  69458.84   -0.14%   +14.42
          t                        3                           %
 .WIG20   Warsaw    .WIG20   2476.06   2496.92   -0.84%   +5.68%
 .BETI    Buchare   .BETI    17725.3  17588.19   +0.78%   +15.32
          st                       2                           %
                                                                
                                                Spread   Daily
                                                vs Bund  change
                                                         in
          Czech                                          spread
          Republi                                        
          c                                              
 CZ2YT=R                                            s  
 CZ5YT=R                                            s  
 CZ10YT=                                           s  
          Poland                                                
 PL2YT=R                                            s  
 PL5YT=R                                            s  
 PL10YT=                                           s  
          Note:    are for                                      
          FRA      ask                                   
          quotes   prices                                
          **************************                            
          **************************                     
          **********                                     
 
 (Reporting by Anna Wlodarczak-Semczuk in Warsaw, Boldizsar
Gyori in Budapest, Jason Hovet in Prague, Editing by Ros
Russell)
 ((anna.wlodarczak@thomsonreuters.com;))
 
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