CEE MARKETS-Forint hits more than 4-month low as CEE FX retreat

    PRAGUE, Sept 2 (Reuters) - Hungary's forint fell to its
lowest level since end-April on Wednesday as central Europe's
currencies retreated after the U.S. dollar bounced back
following strong manufacturing data.
    Central European currencies had found support from a weaker
dollar over the past week as the euro, the region's main
reference currency, hit its strongest against the U.S. currency
since May 2018. The euro's rise came after the Federal Reserve
announced it would tolerate periods of higher inflation.
    But the dollar reversed overnight after U.S. manufacturing
activity increased more than expected in August. 
    This hit emerging currencies like in central Europe,
although the region's stocks followed global equities higher as
better data from major economies supported recovery hopes.
    The forint was down 0.4% at 357.20 to the euro at 0846 GMT,
after touching its weakest level since April 28 at 357.80, and
passing a technical resistance level around 356.
    "The next few days will be decisive with respect to whether
we will see a... correction starting or the weakening
continues," Equilor analysts said.
    The forint has been the most under pressure in central
Europe since its central bank loosened monetary policy amid the
coronavirus crisis and, this week, expanded bond purchases as
part of an earlier announced plan.
    Hungary's economic output in the second quarter also
contracted the most in central Europe, data confirmed this week.
    In Poland, the zloty lost 0.4% to 4.409 per euro
and the Czech crown shed 0.3% to 26.310, approaching a
one-month low beyond 26.325. Romania's leu was steady
around 4.84.
    A Prague dealer said low liquidity was helping exaggerate
crown moves. "If (the euro) moves further down, I think we might
see a test of 26.400," the dealer said.
    In stock markets, Budapest rose 1.0% to lead gains,
followed by a 0.9% rise in Warsaw.
                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1046              
                            Latest   Previou  Daily    Change
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  26.3100  26.2305   -0.30%   -3.34%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  357.200  355.805   -0.39%   -7.29%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.4090   4.3905   -0.42%   -3.46%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8415   4.8410   -0.01%   -1.10%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5350   7.5345   -0.01%   -1.19%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.530  117.580   +0.04%   +0.03%
 =       dinar     =>             0        0           
         Note:     calculated from            1800            
         daily                                CET      
         change STOCKS                                     
                            Latest   Previou  Daily    Change
                                     close    change   in 2020
 .PX     Prague              909.23  903.330   +0.65%  -18.50%
 .BUX    Budapest           34847.5  34499.9   +1.01%  -24.38%
                                  4        0           
 .WIG20  Warsaw    <.WIG20  1788.35  1772.61   +0.89%  -16.82%
 .BETI   Buchares           8995.99  9009.43   -0.15%   -9.84%
 .SBITO  Ljubljan  <.SBITO   848.99   849.60   -0.07%   -8.30%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1623.07  1625.92   -0.18%  -19.55%
 .BELEX  Belgrade  <.BELEX   692.31   692.07   +0.03%  -13.64%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   430.27   430.87   -0.14%  -24.27%
                   > BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
         Czech                                         spread
 CZ2YT=    2-year  <CZ2YT=   0.1600  -0.0200   +084bp    -2bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   0.6870  -0.0410   +136bp    -2bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.0870  -0.0210   +153bp    +1bps
 =RR     10-year   =RR>                             s  
 PL2YT=    2-year  <PL2YT=   0.1430  -0.0050   +082bp    +0bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   0.7230  -0.0210   +140bp    +0bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.3820  -0.0030   +183bp    +3bps
 =RR     10-year   =RR>                             s  
                            3x6      6x9      9x12     3M
         Czech     <CZKFRA     0.37     0.39     0.42     0.34
         Rep       ><PRIBO                             
         Hungary   <HUFFRA     0.79     0.87     0.93     0.62
         Poland    <PLNFRA     0.24     0.23     0.24     0.23
         Note: FRA quotes are for                             
         ask prices                                    
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 (Reporting by Jason Hovet in Prague and Krisztina Than in
Budapest; editing by Uttaresh.V)