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CEE MARKETS-Forint hits June low before central bank…

PRAGUE, June 23 – Hungary’s forint slipped to a 3-1/2 week low against the euro on Tuesday before the end of a central bank meeting expected to leave rates on hold although rate setters could show a more dovish tone. Other central European currencies, along with stocks, firmed with global markets more upbeat after confusion over the U.S.-China trade pact which the former said remained intact. The forint had eased half a percent to 348.85 to the euro by 0836 GMT, its lowest since May 29. Erste Bank analysts said profit-taking after the currency traded around three-month highs for much of June was likely driving trading before the central bank. “If the rate meeting does not bring any substantive news, that could help the forint to rebound,” the bank said. A Reuters poll forecast unchanged interest rates although analysts said a downgrade to the bank’s growth projections could lead to a more dovish tone in its policy statement. The bank will hold an online news conference after its meeting at 1300 GMT, with the bank’s governor and deputy governors attending. This includes new deputy governor Barnabas Virag, who replaced Marton Nagy, the architect of many of the bank’s unconventional monetary easing programmes. Elsewhere, the Czech crown edged 0.2% higher before its own rate meeting on Wednesday. Likewise, Czech policymakers will likely leave rates unchanged. The Polish zloty was up 0.15% and Romania’s leu was steady. On stock markets, Warsaw blue chips led gains, rising 2.6%. Polish retail sales on Monday surprised on the upside, posting a better than expected 7.7% decline. CEE SNAPSHO AT 1037 CET MARKETS T CURRENCIES Latest Previou Daily Change s bid close change in 2020 EURCZK Czech <EURCZK 26.6250 26.6715 +0.17% -4.48% = crown => EURHUF Hungary <EURHUF 348.850 347.080 -0.51% -5.08% = forint => 0 0 EURPLN Polish <EURPLN 4.4360 4.4428 +0.15% -4.05% = zloty => EURRON Romanian <EURRON 4.8430 4.8422 -0.02% -1.13% = leu => EURHRK Croatian <EURHRK 7.5750 7.6246 +0.65% -1.71% = kuna => EURRSD Serbian <EURRSD 117.480 117.580 +0.09% +0.08% = dinar => 0 0 Note: calculated from 1800 daily CET change STOCKS Latest Previou Daily Change s close change in 2020 .PX Prague 934.59 927.120 +0.81% -16.23% 0 .BUX Budapest 37611.0 37193.1 +1.12% -18.38% 8 1 .WIG20 Warsaw <.WIG20 1844.03 1797.05 +2.61% -14.23% > .BETI Buchares 8700.49 8683.52 +0.20% -12.80% t .SBITO Ljubljan <.SBITO 857.30 858.82 -0.18% -7.41% P a P> .CRBEX Zagreb <.CRBEX 1631.34 1640.76 -0.57% -19.14% > .BELEX Belgrade <.BELEX 670.07 671.33 -0.19% -16.42% 15 15> .SOFIX Sofia <.SOFIX 457.41 457.22 +0.04% -19.49% > BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT= 2-year <CZ2YT= 0.1250 0.0230 +079bp +0bps RR RR> s CZ5YT= 5-year <CZ5YT= 0.3260 -0.1510 +099bp -17bps RR RR> s CZ10YT <CZ10YT 0.8170 0.0320 +124bp +1bps =RR 10-year =RR> s Poland PL2YT= 2-year <PL2YT= 0.1680 -0.0050 +084bp -3bps RR RR> s PL5YT= 5-year <PL5YT= 0.7590 -0.0040 +143bp -2bps RR RR> s PL10YT <PL10YT 1.3790 0.0180 +180bp +0bps =RR 10-year =RR> s FRA 3×6 6×9 9×12 3M interba nk Czech <CZKFRA 0.31 0.31 0.34 0.34 Rep ><PRIBO R=> Hungary <HUFFRA 0.72 0.66 0.62 0.89 ><BUBOR => Poland <PLNFRA 0.23 0.24 0.25 0.27 ><WIBOR => Note: FRA quotes are for ask prices ***************************************************** ********* (Reporting by Jason Hovet in Prague, Anita Komuves in Budapest and Alan Charlish in Warsaw, editing by Ed Osmond)

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