July 8, 2020 / 9:55 AM / a month ago

CEE MARKETS-Currencies ease as markets assess economic impact of virus resurgence

    By Anita Komuves
    BUDAPEST, July 8 (Reuters) - Central European currencies
weakened on Wednesday, with the forint easing to a one-week low
versus the euro, as investors turned cautious on signs of a
slower-than-expected economic revival after countries reported a
resurgence in COVID-19 cases.
    "Markets are hoping for a recovery sooner or later," said an
FX trader in Budapest.   
    "But free money will not make the virus go away, and this
constant pressure will stay with us," he said.
    The forint and the crown both plunged on Tuesday after
dismal industrial output data in Central Europe showed a
slower-than-expected recovery from the economic crisis caused by
the pandemic.
    The forint was down 0.33% on Wednesday and trading
at 355.05 versus the euro, a one-week low. 
    Investors will also closely watch the minutes of the last
rate-setting meeting of the Hungarian central bank due later in
the day, Erste Bank said in a note. 
    The National Bank of Hungary unexpectedly cut its base rate
by 0.15 basis points to 0.75% at its June 23 meeting. The bank's
deputy governor later said the NBH may cut its base rate by
another 15 basis points this month.
    Elsewhere, the Polish zloty was mostly stable,
down 0,06% and trading at 4.476 to the common currency. 
    The Czech crown eased 0.13% to 26.730 versus the
euro. 
    The Czech parliament will once again vote on the third
extension of this year's budget deficit to as much as 9% of
economic output, far above the EU's 3% normal threshold.
    "As the approval of the budget seems likely today CZK might
continue its sideways trade," Commerzbank said in a note.
    Stocks in the region were mixed, with Prague gaining
0.3% and Budapest up 0.24%. Bucharest's blue-chip index
gained 0.15%, while Warsaw was down 0.45%.
    
           CEE        SNAPSHOT    AT  0942                    
           MARKETS               CET                  
                      CURRENCIE                               
                      S                               
                      Latest     Previous   Daily     Change
                      bid        close      change    in 2020
 Czech                  26.7300    26.6950    -0.13%    -4.86%
 crown                                                
 Hungary               355.0500   353.8900    -0.33%    -6.73%
 forint                                               
 Polish                  4.4764     4.4735    -0.06%    -4.91%
 zloty                                                
 Romanian                4.8395     4.8380    -0.03%    -1.06%
 leu                                                  
 Croatian                7.5390     7.5483    +0.12%    -1.24%
 kuna                                                 
 Serbian               117.5700   117.5900    +0.02%    +0.00%
 dinar                                                
 Note:     calculated from                  1800 CET          
 daily                                                
 change                                               
                                                              
                      Latest     Previous   Daily     Change
                                 close      change    in 2020
 Prague                  939.58   936.7900    +0.30%   -15.78%
 Budapest              35833.78   35747.71    +0.24%   -22.24%
 Warsaw                 1792.24    1800.93    -0.48%   -16.64%
 Buchares               8536.32    8523.47    +0.15%   -14.44%
 t                                                    
 Ljubljan                852.32     852.27    +0.01%    -7.94%
 a                                                    
 Zagreb                 1616.00    1616.07    -0.00%   -19.90%
 Belgrade  <.BELEX15     659.93     659.93    +0.00%   -17.68%
           >                                          
 Sofia                   446.73     446.22    +0.11%   -21.37%
                                                              
                      Yield      Yield      Spread    Daily
                      (bid)      change     vs Bund   change
                                                      in
 Czech                                                spread
 Republic                                             
   2-year  <CZ2YT=RR    -0.0040     0.0070   +067bps     +1bps
           >                                          
   5-year  <CZ5YT=RR     0.3170    -0.0560   +099bps     -4bps
           >                                          
           <CZ10YT=R     0.7980     0.0070   +124bps     +3bps
 10-year   R>                                         
 Poland                                                       
   2-year  <PL2YT=RR     0.1220     0.0000   +080bps     +1bps
           >                                          
   5-year  <PL5YT=RR     0.7400    -0.0050   +141bps     +1bps
           >                                          
           <PL10YT=R     1.3660    -0.0040   +181bps     +2bps
 10-year   R>                                         
           FORWARD                                            
                      3x6        6x9        9x12      3M
                                                      interban
                                                      k
 Czech             <       0.28       0.28      0.29      0.34
 Rep       PRIBOR=>                                   
 Hungary           <       0.65       0.64      0.64      0.70
           BUBOR=>                                    
 Poland            <       0.20       0.20      0.21      0.26
           WIBOR=>                                    
 Note:     are for ask prices                                 
 FRA                                                  
 quotes                                               
 ***************************************************          
 ***********                                          
    
    

 (Additional reporting by Jason Hovet in Prague, Editing by
Sherry Jacob-Phillips)
  
 
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below