July 23, 2020 / 9:52 AM / 18 days ago

CEE MARKETS-Central European currencies firm on EU fund deal, data

    By Joanna Plucinska and Anita Komuves
    WARSAW, July 23 (Reuters) - Central European currencies rose
on Thursday while stock markets were mixed as sentiment
continued to improve in the region  after a landmark European
Union deal to help coronavirus-stricken economies.
    EU leaders agreed on Tuesday after a four-day summit a 750
billion euro coronavirus recovery package, with generous
handouts expected for both Poland and Hungary.
    "This fund will be an investment driver in the medium-term,
of course it'll be good for these currencies," Krystian
Jaworski, an economist at Credit Agricole said. 
    Currencies in the region were lifted by the risk-on mood in
global markets as well as better than expected macroeconomic
data, with the Hungarian forint leading gains in the
region, up 0.56% on the day at 346.320 against the euro. 
    The National Bank of Hungary cut its base rate by 15 basis
points to 0.6% on Tuesday, as expected. Deputy governor Barnabas
Virag said last month that July's cut would be as far as the
bank would go. 
    The National Bank of Hungary (NBH) has agreed with the
European Central Bank (ECB) to set up a repo line arrangement to
provide euro liquidity to Hungarian banks to address possible
euro liquidity needs amid the COVID-19 pandemic.
    Romania and Serbia are also among a number of Eastern
European countries that secured access to euro liquidity via
similar repo or swap lines with the ECB.
    Elsewhere, The Czech crown rose by 0.4% by 0916
GMT and was trading at 26.265 to the euro. The Polish zloty
 was up 0.27% at 4.405 versus the common currency. 
    Positive macroeconomic data in Poland contributed to the
rise as well, notably industrial output, which
showed "the decreasing influence of the COVID-19 epidemic on
economic activity," Jaworski added.
    Unemployment rose to 6.1% in Poland, figures released by the
statistics office on Thursday showed. Analysts said
that, even though there was a rise, it was slower than expected
at the start of the coronavirus pandemic. 
    
                    CEE       SNAPSHO   AT                      
                    MARKETS   T        1116 CET          
                              CURRENC                           
                              IES                        
                              Latest   Previous  Daily   Change
                              bid      close     change  in 2020
 EURCZK=  Czech     <EURCZK=  26.2650   26.3690   +0.40   -3.17%
          crown     >                                 %  
 EURHUF=  Hungary   <EURHUF=  346.320  348.2500   +0.56   -4.38%
          forint    >               0                 %  
 EURPLN=  Polish    <EURPLN=   4.4050    4.4170   +0.27   -3.37%
          zloty     >                                 %  
 EURRON=  Romanian  <EURRON=   4.8345    4.8375   +0.06   -0.96%
          leu       >                                 %  
 EURHRK=  Croatian  <EURHRK=   7.5210    7.5223   +0.02   -1.01%
          kuna      >                                 %  
 EURRSD=  Serbian   <EURRSD=  117.570  117.6500   +0.07   +0.00%
          dinar     >               0                 %  
          Note:     calculated from              1800           
          daily                                  CET     
          change                                         
                                                                
                              Latest   Previous  Daily   Change
                                       close     change  in 2020
 .PX      Prague               943.17  944.0800  -0.10%  -15.46%
 .BUX     Budapest            35724.8  35436.39   +0.81  -22.48%
                                    2                 %  
 .WIG20   Warsaw              1831.50   1830.61   +0.05  -14.82%
                                                      %  
 .BETI    Buchares            8591.37   8583.40   +0.09  -13.89%
          t                                           %  
 .SBITOP  Ljubljan  <.SBITOP   848.61    855.41  -0.79%   -8.34%
          a         >                                    
 .CRBEX   Zagreb              1603.62   1604.78  -0.07%  -20.51%
 .BELEX1  Belgrade  <.BELEX1   657.65    657.73  -0.01%  -17.97%
 5                  5>                                   
 .SOFIX   Sofia                438.73    439.71  -0.22%  -22.78%
                                                                
                              Yield    Yield     Spread  Daily
                              (bid)    change    vs      change
                                                 Bund    in
          Czech                                          spread
          Republic                                       
 CZ2YT=R    2-year  <CZ2YT=R   0.0680    0.0390   +076b    +4bps
 R                  R>                               ps  
 CZ5YT=R    5-year  <CZ5YT=R   0.4000   -0.0750   +109b    -8bps
 R                  R>                               ps  
 CZ10YT=            <CZ10YT=   0.8360    0.0090   +132b    +0bps
 RR       10-year   RR>                              ps  
          Poland                                                
 PL2YT=R    2-year  <PL2YT=R   0.1260   -0.0040   +082b    +0bps
 R                  R>                               ps  
 PL5YT=R    5-year  <PL5YT=R   0.7570    0.0000   +145b    +0bps
 R                  R>                               ps  
 PL10YT=            <PL10YT=   1.3300    0.0180   +182b    +1bps
 RR       10-year   RR>                              ps  
                    FORWARD                                     
                              3x6      6x9       9x12    3M
                                                         interba
                                                         nk
          Czech                  0.30      0.31    0.33     0.34
          Rep       <PRIBOR=                             
                    >                                    
          Hungary                0.62      0.60    0.59     0.61
                                                         
          Poland                 0.20      0.22    0.23     0.25
                                                         
          Note:     are for ask                                 
          FRA       prices                               
          quotes                                         
          *********************************************         
          *****************                              
 

 (Editing by Emelia Sithole-Matarise)
  
 
 
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