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Forint and Czech crown lose momentum, zloty gains



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-Forint and Czech crown lose momentum, zloty gains</title></head><body>

Focus on inflation data later this week

Polish zloty benefits from expected stable rates

Region's stock markets mostly higher

By Anna Wlodarczak-Semczuk

WARSAW, Oct 9 (Reuters) -The Czech crown and Hungarian forint weakened slightly on Wednesday, losing momentum after the previous day's rally, while the Polish zloty extended gains, as global factors dominated investors' concerns.

Citing a lack of scheduled events, but ongoing geopolitical risk and a possible escalation in the Middle East, ING analysts said they were becoming more bullish on CEE currencies.

"Local fundamentals in our view remain strong given that the market has priced out much of the central bank easing across the region," they said in a note. "Interest rate differentials post the selloff are at record strong levels for CEE FX, which we think should be a key driver if the global story remains muted."

The Hungarian forint EURHUF= was down 0.18% at 400 per euro at 0900 GMT.

"Today could be about wait-and-see ahead of tomorrow's inflation data, and the forint's market could be mainly watching international moves," Erste Bank analysts wrote in a note.

Investors will also monitor inflation data due later in the week in Europe and the United States.

On Friday, a better-than-expected U.S. jobs report reduced bets of outsized Federal Reserve rate cuts, leaving central Europe under renewed pressure from the dollar.

The Polish zloty EURPLN=, which has benefited from the National Bank of Poland's intention to maintain stable rates as other central banks ease policy, was up 0.15% at 4.3020 per euro on Wednesday, holding gains from the previous session.

"The zloty, which strengthened yesterday for the first time in almost two weeks, will fight to return below the level of 4.30. However, we do not believe that today's attempts to play the Polish currency stronger will be effective," Bank Millennium said.

Meanwhile the Czech crown EURCZK= was down 0.17% at 25.3530 per euro, with Commerzbank economists expecting it to gradually return towards 25.15 level over the coming quarter.

Stock markets in the region were mostly up, with the Warsaw blue-chip index .WIG20 gaining 1.15%, while Prague .PX was an outlier with a loss of 0.3%.




CEE MARKETS

SNAPSHOT

AT 1100 CET






CURRENCIES







Latest

Previous

Daily

Change




trade

close

change

in 2024

EURCZK=

Czech crown

EURCZK=

25.3530

25.3090

-0.17%

-2.57%

EURHUF=

Hungary forint

EURHUF=

400.0000

399.3000

-0.18%

-4.20%

EURPLN=

Polish zloty

EURPLN=

4.3020

4.3085

+0.15%

+0.99%

EURRON=

Romanian leu

EURRON=

4.9773

4.9774

+0.00%

-0.06%

EURRSD=

Serbian dinar

EURRSD=

117.0100

117.0600

+0.04%

+0.20%


Note: daily change

calculated from


1800 CET












Latest

Previous

Daily

Change





close

change

in 2024

.PX

Prague

.PX

1588.17

1593.2100

-0.32%

+12.32%

.BUX

Budapest

.BUX

74240.74

74175.47

+0.09%

+22.47%

.WIG20

Warsaw

.WIG20

2311.13

2284.75

+1.15%

-1.36%

.BETI

Bucharest

.BETI

17600.65

17520.32

+0.46%

+14.50%













Spread

Daily






vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

3.2740

-0.0200

+105bps

-2bps

CZ5YT=RR

5-year

CZ5YT=RR

3.5760

-0.0360

+148bps

-3bps

CZ10YT=RR

10-year

CZ10YT=RR

3.9020

-0.0130

+167bps

+0bps


Poland






PL2YT=RR

2-year

PL2YT=RR

4.8850

-0.1290

+266bps

-13bps

PL5YT=RR

5-year

PL5YT=RR

5.1770

-0.0080

+308bps

+0bps

PL10YT=RR

10-year

PL10YT=RR

5.4420

-0.0470

+321bps

-4bps










FORWARD RATE AGREEMENTS







3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

3.78

3.47

3.32

4.17


Hungary

HUFFRABUBOR=

6.19

6.36

6.11

6.32


Poland

PLNFRAWIBOR=

5.75

5.45

4.91

5.85


Note: FRA quotes

are for ask prices





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





Additional reporting by Anita Komuves in Budapest; Editing by Barbara Lewis

For related news and prices, click on the codes in brackets: All emerging market news EMRG CEEU CEE/ Spot FX rates Eastern Europe spot FX EEFX= Middle East spot FX MEFX= Asia spot FX ASIAFX= Latin America spot FX LATAMFX= Other news and reports World central bank news CEN Economic Data Guide ECONGUIDE Official rates GLOBAL/INT Emerging Diary EMRG/DIARY Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY
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