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CEE MARKETS-FX lifted by the dollar's easing, brighter market mood

CEE MARKETS-FX lifted by the dollar's easing, brighter market mood

reuters.com · 04/29/2022 05:33
CEE MARKETS-FX lifted by the dollar's easing, brighter market mood

By Anita Komuves

- Central European currencies firmed on Friday, stabilising after a week of turmoil caused by concerns over Europe's energy security, while data showed bigger than expected GDP growth in the Czech Republic and a rise in Polish inflation in April.

"The mood is a bit brighter today and it is helping that the dollar is giving up some of this week's gains. If it weakens a bit more, that could help all CEE currencies strengthen," a FX trader in Budapest said.

Currencies in the region recouped some losses in a correction on Thursday after an announcement by Russian energy company Gazprom that it was halting gas supplies to Bulgaria and Poland drove them down earlier in the week.

The Polish zloty EURPLN= was up 0.48% on the day, trading at 4.6675 versus the common currency after a flash April inflation reading showed a bigger than expected 12.3% rise in annual inflation. nS8N2W404O

The Czech crown EURCZK= firmed 0.1% to 24.550 to the euro, trading within its recent range and near levels seen before Russia invaded Ukraine on Feb 24.

Data showed on Friday that the Czech economy grew by 4.6% year-on-year, faster than expected, as it was boosted by household consumption while foreign trade lagged. nS8N2S6018

Investors also await central bank meetings in Poland and the Czech Republic next week.

Central bankers in both countries meet on May 5 and both banks are widely expected to raise rates given a continued surge in inflation whose affects are being felt around the region as it drives up borrowing costs.

In Hungary, the central bank raised its base rate by another 100 basis points to 5.4% on Tuesday and followed that up with a 30 basis point hike of the one-week deposit rate on Thursday at its weekly tender. nL5N2WO2QMnL2N2WQ0KC

The forint largely ignored rate hikes that had been priced in by markets and the currency's rate has been driven by international events, traders and analysts said.

The forint EURHUF= was up 0.29% on the day and trading at 377.40 per euro, weaker than the levels seen before the rate hikes.





CEE MARKETS

SNAPSHOT

AT 1009 CET






CURRENCIES







Latest

Previous

Daily

Change




bid

close

change

in 2022

EURCZK=

Czech crown

EURCZK=

24.5500

24.5750

+0.10%

+1.31%

EURHUF=

Hungary forint

EURHUF=

377.4000

378.5000

+0.29%

-2.12%

EURPLN=

Polish zloty

EURPLN=

4.6675

4.6900

+0.48%

-1.64%

EURRON=

Romanian leu

EURRON=

4.9490

4.9510

+0.04%

-0.02%

EURHRK=

Croatian kuna

EURHRK=

7.5680

7.5695

+0.02%

-0.67%

EURRSD=

Serbian dinar

EURRSD=

117.6400

117.6600

+0.02%

-0.05%


Note: daily change

calculated from


1800 CET












Latest

Previous

Daily

Change





close

change

in 2022

.PX

Prague

.PX

1350.27

1367.5800

-1.27%


.BUX

Budapest

.BUX

44304.29

43549.19

+1.73%

-12.65%

.WIG20

Warsaw

.WIG20

1909.51

1884.42

+1.33%

-15.77%

.BETI

Bucharest

.BETI

12880.58

12769.93

+0.87%

-1.38%

.SBITOP

Ljubljana

.SBITOP

1172.39

1170.51

+0.16%

-6.62%

.CRBEX

Zagreb

.CRBEX

2128.18

2127.47

+0.03%

+2.35%

.BELEX15

Belgrade

.BELEX15

826.89

832.79

-0.71%

+0.74%

.SOFIX

Sofia

.SOFIX

613.39

610.55

+0.47%

-3.51%











Yield

Yield

Spread

Daily




(bid)

change

vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

5.1760

-0.1310

+496bps

-16bps

CZ5YT=RR

5-year

CZ5YT=RR

4.6490

-0.0270

+401bps

-4bps

CZ10YT=RR

10-year

CZ10YT=RR

4.3410

0.0010

+346bps

+2bps


Poland






PL2YT=RR

2-year

PL2YT=RR

6.8180

0.1110

+660bps

+8bps

PL5YT=RR

5-year

PL5YT=RR

6.9180

0.0910

+628bps

+8bps

PL10YT=RR

10-year

PL10YT=RR

6.4290

0.1120

+555bps

+13bps



FORWARD








3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

6.07

6.06

6.00

5.43


Hungary

HUFFRABUBOR=

7.84

8.15

8.25

6.75


Poland

PLNFRAWIBOR=

7.61

7.62

7.61

5.95


Note: FRA quotes

are for ask prices





**************************************************************



(Editing by Barbara Lewis)

((komuves.anita@thomsonreuters.com)(+36 70 795 8815))

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