WARSAW, Oct 1 (Reuters) - Central European currencies firmed on Thursday as improving global sentiment and some moderately positive industrial data helped them shake off losses incurred earlier in a week of high volatility. The Polish zloty, in particular, has been on a rollercoaster ride this week, posting its biggest intraday gain since May on Tuesday after previously weakening on concerns about rising coronavirus cases and the country's relations with the European Union. "I think investors decided it was time for a correction," said Krystian Jaworski, senior economist at Credit Agricole in Warsaw. "After the debate between Biden and Trump we saw an increased possibility of Biden winning so this also supported risk appetite. Higher risk appetite and correction both those things contributed to the strengthening of the currencies." At 0923 GMT, the Polish zloty was 0.41% firmer against the euro at 4.5115, the Czech crown was 0.26% stronger at 26.98, while the Hungarian forint gained 0.71% to trade at 360.90. In Hungary, investors were waiting for the central bank's one-week deposit tender. The bank holds the tender every Thursday and sets the interest rate weekly. The bank unexpectedly raised the interest rate on the facility last Thursday by 15 basis points to 0.75%, which helped buoy the forint. PMI readings in Poland and the Czech Republic showed marginal improvements in the country's manufacturing sectors, while in Hungary the reading fell below the 50.0 mark that separates growth from contraction. Czech bonds ticked slightly lower, taking in stride Finance Ministry plans to propose a 320 billion crown ($13.87 billion) budget gap next year - equal to about 5.5% of GDP - which is larger than some anticipated. The figure still does not include a planned personal income tax cut worth about 70 billion crowns. Czech 10-year bond yields were at 0.854%, while Polish 10-year yields fell 1 basis point to 1.303% Stocks were mixed, with Prague's PX index falling 1%, while in Budapest the main index rose 0.74%. Warsaw's WIG 20 index was flat. CEE SNAPSHO AT MARKETS T 1123 CET CURRENC IES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech <EURCZK= 26.9800 27.0500 +0.26 -5.74% crown > % EURHUF= Hungary <EURHUF= 360.900 363.4500 +0.71 -8.24% forint > 0 % EURPLN= Polish <EURPLN= 4.5115 4.5300 +0.41 -5.65% zloty > % EURRON= Romanian <EURRON= 4.8740 4.8740 +0.00 -1.76% leu > % EURHRK= Croatian <EURHRK= 7.5605 7.5605 +0.00 -1.52% kuna > % EURRSD= Serbian <EURRSD= 117.500 117.6000 +0.09 +0.06 dinar > 0 % % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 .PX Prague 859.51 868.3300 -1.02% -22.96 % .BUX Budapest 33167.7 32923.53 +0.74 -28.03 0 % % .WIG20 Warsaw 1712.63 1712.73 -0.01% -20.35 % .BETI Bucharest 9014.67 9007.20 +0.08 -9.65% % .SBITOP Ljubljana <.SBITOP 853.24 846.20 +0.83 -7.84% > % .CRBEX Zagreb 1612.76 1608.54 +0.26 -20.06 % % .BELEX1 Belgrade <.BELEX1 691.06 692.93 -0.27% -13.80 5 5> % .SOFIX Sofia 427.88 427.55 +0.08 -24.69 % % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year <CZ2YT=R 0.0630 -0.0280 +076b -3bps R R> ps CZ5YT=R 5-year <CZ5YT=R 0.4760 -0.0570 +118b -6bps R R> ps CZ10YT= 10-year <CZ10YT= 0.8540 -0.0070 +137b -1bps RR RR> ps Poland PL2YT=R 2-year <PL2YT=R 0.0590 -0.0300 +076b -3bps R R> ps PL5YT=R 5-year <PL5YT=R 0.5670 -0.0390 +127b -4bps R R> ps PL10YT= 10-year <PL10YT= 1.3030 -0.0100 +182b -1bps RR RR> ps FORWARD 3x6 6x9 9x12 3M interb ank Czech Rep 0.30 0.30 0.35 0.35 <PRIBOR= > Hungary 1.04 1.06 1.11 0.77 Poland 0.19 0.18 0.18 0.22 Note: FRA are for ask quotes prices ********************************************** **************** (Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague and Anita Komuves in Budapest; Editing by Aditya Soni)
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