April 23, 2020 / 10:12 AM / a month ago

CEE MARKETS-Forint looks to reverse course as CEE FX push higher

    PRAGUE, April 23 (Reuters) - Central Europe's currencies
gained on Thursday, reversing some recent losses as stimulus
hopes bucked up markets, although Hungary's forint remained
under pressure.
    Hungary's central bank governor, Gyorgy Matolcsy, told the
Figyelo weekly on Thursday the bank was ready to take more steps
to mitigate the economic impact of the coronavirus pandemic. It
will begin its bond-buying programme early next month, he said.
    The central bank has been navigating a tricky path of
preventing a sell-off in the currency by keeping interest rates
up while supporting the shrinking economy with other tools.
    A Reuters poll on Thursday showed analysts expect the bank
to leave its key rates unchanged next Tuesday after an
unexpected increase in lending rates early this month.
    The forint was down less than 0.1% on the day at
0934 GMT, erasing early gains as it sought to recover from a
steady decline from 350 in the last week.
    "The central bank pushed out a lot of liquidity in the
market recently and that always weakens the currency," a
Budapest-based trader said. 
    Some analysts have said the currency volatility skewed risks
toward tighter monetary policy. The central bank has said it
could raise the 0.9% rate on a new one-week deposit tool if
market conditions justify.
    Elsewhere, the Czech crown gained 0.5%, snapping a
three-day losing streak, as expectations of further central bank
rate cuts continue to weigh. Poland's zloty added
0.2%. On stock markets, Prague led gains with a 1.4% rise.
    Currencies have been largely stuck in wide ranges in April
after huge losses in March of as much as 8%.
    Investors held out some hope more stimulus in the United
States or Europe could boost to major economies. 
    European Union leaders hold a video conference on Thursday
and are seen asking the European Commission to propose a fund
big enough to target the most affected sectors and regions.


                   CEE      SNAPSHO   AT                      
                   MARKETS  T        1134              
                                     CET               
                                                              
                   CURRENC                                    
                   IES                                 
                            Latest   Previou  Daily    Change
                                     s                 
                            bid      close    change   in 2020
 EURCZK  Czech     <EURCZK  27.5190  27.6520   +0.48%   -7.58%
 =       crown     =>                                  
 EURHUF  Hungary   <EURHUF  357.600  357.345   -0.07%   -7.40%
 =       forint    =>             0        0           
 EURPLN  Polish    <EURPLN   4.5412   4.5516   +0.23%   -6.27%
 =       zloty     =>                                  
 EURRON  Romanian  <EURRON   4.8439   4.8425   -0.03%   -1.15%
 =       leu       =>                                  
 EURHRK  Croatian  <EURHRK   7.5730   7.5691   -0.05%   -1.68%
 =       kuna      =>                                  
 EURRSD  Serbian   <EURRSD  117.550  117.650   +0.09%   +0.02%
 =       dinar     =>             0        0           
         Note:     calcula                    1800            
         daily     ted                        CET      
         change    from                                
                                                              
                   STOCKS                                     
                            Latest   Previou  Daily    Change
                                     s                 
                                     close    change   in 2020
 .PX     Prague              846.25  834.310   +1.43%  -24.15%
                                           0           
 .BUX    Budapest           32351.4  32328.2   +0.07%  -29.80%
                                  8        7           
 .WIG20  Warsaw    <.WIG20  1611.31  1605.12   +0.39%  -25.06%
                   >                                   
 .BETI   Buchares           7911.84  7843.37   +0.87%  -20.70%
         t                                             
 .SBITO  Ljubljan  <.SBITO   781.05   777.17   +0.50%  -15.64%
 P       a         P>                                  
 .CRBEX  Zagreb    <.CRBEX  1554.67  1545.72   +0.58%  -22.94%
                   >                                   
 .BELEX  Belgrade  <.BELEX   682.17   682.64   -0.07%  -14.91%
 15                15>                                 
 .SOFIX  Sofia     <.SOFIX   439.58   435.38   +0.96%  -22.63%
                   >                                   
                                                              
                   BONDS                                      
                            Yield    Yield    Spread   Daily
                            (bid)    change   vs Bund  change
                                                       in
         Czech                                         spread
         Republic                                      
 CZ2YT=    2-year  <CZ2YT=   0.7610   0.0440   +145bp    +7bps
 RR                RR>                              s  
 CZ5YT=    5-year  <CZ5YT=   1.0120   0.0660   +163bp    +7bps
 RR                RR>                              s  
 CZ10YT            <CZ10YT   1.2780  -0.0530   +170bp    -5bps
 =RR     10-year   =RR>                             s  
         Poland                                               
 PL2YT=    2-year  <PL2YT=   0.6050   0.0110   +130bp    +3bps
 RR                RR>                              s  
 PL5YT=    5-year  <PL5YT=   1.0020   0.0540   +162bp    +6bps
 RR                RR>                              s  
 PL10YT            <PL10YT   1.3470   0.0000   +177bp    +0bps
 =RR     10-year   =RR>                             s  
                                                              
                   FRA                                        
                            3x6      6x9      9x12     3M
                                                       interba
                                                       nk
         Czech     <CZKFRA     0.29     0.31     0.35     0.95
         Rep       ><PRIBO                             
                   R=>                                 
         Hungary   <HUFFRA     1.23     1.19     1.15     1.10
                   ><BUBOR                             
                   =>                                  
         Poland    <PLNFRA     0.35     0.27     0.27     0.70
                   ><WIBOR                             
                   =>                                  
         Note: FRA quotes                                     
         are for ask                                   
         prices                                        
         ********************************************         
         ******************                            
                                                              
 
 (Reporting by Jason Hovet in Prague, editing by Larry King)
  
 
 
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