July 23, 2019 / 8:11 AM / 4 months ago

CEE MARKETS-Currencies mostly steady; forint weaker before central bank meets

    BUDAPEST, July 23 (Reuters) - Central Europe's currencies
were mostly steady on Tuesday morning, though Hungary's forint
weakened before the Hungarian central bank meets later in the
day.
    The European Central Bank also meets, on Thursday, and
investors are waiting for signals on how fast euro zone
policymakers will ease conditions to help the euro zone economy.
Expectations for a looser monetary stance by the ECB have been
keeping Central European central bankers in a wait-and-see mode.
    The National Bank of Hungary is widely expected to leave its
policy unchanged on Tuesday. The rate decision will be announced
at 1200 GMT.
    "It (NBH) wants to wait and see which of the two opposing
factors on inflation dominates - the inflationary effect of
strong domestic demand or the inflation dampening effect of a
weakening euro area economy," Commerzbank analysts said in a
note. "The NBH would therefore probably only consider adjusting
its monetary policy when publishing new forecasts in September."
    However, Commerzbank said there was "some convincing
evidence" that the current stance of the NBH was appropriate and
further tightening could be unnecessary for now. 
    The analysts said the forint could even gain and approach
320 to the euro in coming months.
    By 0725 GMT, the forint had edged down 0.04% to
324.40 to the euro, below last week's low of 326.83.
    Poland's zloty, Romania's leu and the
Czech crown were practically unchanged.
    The Czech central bank has also paused on rate tightening
following eight increases in the last two years, guiding for
stability ahead.
    Stock markets were trading lower. Budapest was down
0.2 % lower, Prague was down 0.1%, and Warsaw was 0.2%
lower.
    However, broadcaster Central European Media Enterprises
(CME) shares jumped 4.3% to their highest
since December 2017 after an estimate-beating rise in
second-quarter core profit and falling debt levels.
    The shares have soared 26% since CME announced in March it
was beginning a strategic review that could include the sale of
all or part of the company.

           CEE      SNAPSHO   AT                      
           MARKETS  T        0925              
                             CET               
                    CURRENC                           
                    IES                        
                    Latest   Previou  Daily    Change
                             s                 
                    bid      close    change   in 2019
 Czech     <EURCZK  25.5400  25.5450   +0.02%   +0.65%
 crown     =>                                  
 Hungary   <EURHUF  325.400  325.280   -0.04%   -1.33%
 forint    =>             0        0           
 Polish    <EURPLN   4.2475   4.2471   -0.01%   +0.99%
 zloty     =>                                  
 Romanian  <EURRON   4.7220   4.7210   -0.02%   -1.44%
 leu       =>                                  
 Croatian  <EURHRK   7.3860   7.3873   +0.02%   +0.32%
 kuna      =>                                  
 Serbian   <EURRSD  117.770  117.690   -0.07%   +0.45%
 dinar     =>             0        0           
 Note:     calculated from            1800            
 daily                                CET      
 change                                        
                                                      
                    Latest   Previou  Daily    Change
                             s                 
                             close    change   in 2019
 Prague             1068.58  1069.58   -0.09%   +8.31%
                                  00           
 Budapest           41334.7  41338.0   -0.01%   +5.61%
                          2        1           
 Warsaw    <.WIG20  2343.27  2342.51   +0.03%   +2.93%
           >                                   
 Buchares           9050.60  9049.50   +0.01%   +22.58
 t                                                   %
 Ljubljan  <.SBITO   870.09   870.09   +0.00%   +8.19%
 a         P>                                  
 Zagreb    <.CRBEX  1916.19  1916.19   +0.00%   +9.57%
           >                                   
 Belgrade  <.BELEX   748.06   748.06   +0.00%   -1.79%
           15>                                 
 Sofia     <.SOFIX   579.47   579.47   +0.00%   -2.52%
           >                                   
                    BONDS                             
                    Yield    Yield    Spread   Daily
                    (bid)    change   vs Bund  change
                                               in
 Czech                                         spread
 Republic                                      
   2-year  <CZ2YT=   1.4200   0.0200   +219bp    +2bps
           RR>                              s  
   5-year  <CZ5YT=   1.3260   0.0000   +203bp    +0bps
           RR>                              s  
           <CZ10YT   1.4520   0.0330   +180bp    +3bps
 10-year   =RR>                             s  
 Poland                                               
   2-year  <PL2YT=   1.5420   0.0030   +231bp    +0bps
           RR>                              s  
   5-year  <PL5YT=   1.8250  -0.0070   +253bp    -1bps
           RR>                              s  
           <PL10YT   2.1520  -0.0040   +250bp    -1bps
 10-year   =RR>                             s  
           FORWARD  RATE     AGREEME                  
                             NT                
                    3x6      6x9      9x12     3M
                                               interba
                                               nk
 Czech     <CZKFRA     2.17     2.07     1.95     2.16
 Rep       ><PRIBO                             
           R=>                                 
 Hungary   <HUFFRA     0.31     0.38     0.46     0.26
           ><BUBOR                             
           =>                                  
 Poland    <PLNFRA     1.74     1.73     1.71     1.72
           ><WIBOR                             
           =>                                  
 Note:     are for ask                                
 FRA       prices                              
 quotes                                        
 ********************************************         
 ******************                            
 

    

 (Reporting by Krisztina Than, additional reporting by Jason
Hovet in Prague; editing by Larry King)
  
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