Edition:
United Kingdom

Marton Dunai

CEE MARKETS-Currencies gain as economic contraction seen slowing

01 Jul 2020

By Marton Dunai and Alan Charlish BUDAPEST/WARSAW, July 1 Emerging European currencies were mildly stronger on Wednesday amid indications that the pace of the economic downturn was slowing, encouraging investors after this year's coronavirus-induced shock. The downturn in central European manufacturing eased in June as economies reopened after the coronavirus lockdown, purchasing manager surveys showed on Wednesday, although the sector was still contracting. "You can see that the economy is recovering and moods are bouncing back from the bottom reached in April. Lifting the lockdown also has a positive effect on moods in industry," said Grzegorz Maliszewski, chief economist at Bank Millennium. The Czech crown continued to rebound, trading around 26.65 to the dollar after hitting a four-week low of 26.90 at the start the week. "The crown is starting to stabilise despite the further spread of the pandemic," CSOB said, adding that the currency was being helped by improving sentiment on equity markets. "The currency pair is unlikely to try to test 27.00 EUR/CZK again." The Hungarian forint extended gains from Tuesday, recouping some of its losses after last week's central bank decision to cut rates. The bank also signalled of a further easing to offset the economic impact of the coronavirus crisis. But a dealer in Budapest said forint trading was thin amid portfolio adjustments in the middle of the year. "There is little evidence to say the forint is recovering," he said. The Hungarian currency is still near an all-time low around 80 forints to the Polish zloty, he added. Stock market data was affected by a malfunctioning market platform in Germany. Deutsche Boerse said the Frankfurt-based electronic trading system Xetra had experienced a technical issue that affected all securities traded on the platform. Financial data is listed below, omitting the usual stocks data due to the Frankfurt technical issue: CEE SNAPSHOT AT 1012 CET MARKETS CURRENCIE S Latest Previous Daily Change bid close change in 2020 Czech 26.6300 26.6580 +0.11% -4.50% crown Hungary 353.9800 354.5900 +0.17% -6.45% forint Polish 4.4400 4.4449 +0.11% -4.14% zloty Romanian 4.8360 4.8380 +0.04% -0.99% leu Croatian 7.5645 7.5683 +0.05% -1.57% kuna Serbian 117.5400 117.6000 +0.05% +0.03% dinar Note: calculated from 1800 CET daily change Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic 2-year <CZ2YT=RR 0.0930 0.0460 +078bps +4bps > 5-year <CZ5YT=RR 0.3240 -0.1390 +101bps -15bps > 10-year <CZ10YT=R 0.7790 0.0250 +122bps +0bps R> Poland 2-year <PL2YT=RR 0.1700 0.0000 +086bps +0bps > 5-year <PL5YT=RR 0.7620 0.0360 +145bps +2bps > 10-year <PL10YT=R 1.3990 0.0140 +184bps -1bps R> FORWARD 3x6 6x9 9x12 3M interban k Czech Rep < 0.27 0.26 0.28 0.34 PRIBOR=> Hungary < 0.63 0.59 0.57 0.74 BUBOR=> Poland < 0.20 0.21 0.22 0.26 WIBOR=> Note: FRA are for ask prices quotes ********************************************************** **** (Additional reporting by Alicja Ptak in WARSAW, Jason Hovet in PRAGUE; Editing by Edmund Blair)

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12 Jun 2020

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UPDATE 1-Hungary's Budapest Bank joins MKB-Takarek merger as domestic banks grow

26 May 2020

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Hungarian PM's power to rule by decree to end on June 20 - government

26 May 2020

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Migrants stuck in Hungary can take walks after 'transit zones' shut

22 May 2020

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Hungary tightens asylum rules as it ends migrant detention zones

21 May 2020

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Hungary ruling in Roma segregation case 'unfair' - PM Orban

15 May 2020

BUDAPEST Hungarian Prime Minister Victor Orban on Friday said a Supreme Court ruling awarding damages to schoolchildren from the Roma minority who were put in separate classes was unfair and pledged to change the law to prevent any future such decisions.

Hungarian top court confirms Roma unlawfully segregated, awards damages

12 May 2020

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