July 25, 2019 / 3:04 PM / 4 months ago

UPDATE 1-CEE MARKETS-Euro rally pushes central Europe currencies to one-week lows

 (Updates after ECB meeting)
    PRAGUE, July 25 (Reuters) - Central European currencies hit
one-week lows on Thursday, pushed down as the euro rallied after
European Central Bank Governor Mario Draghi sounded more upbeat
on the euro zone's economy than expected.
    The Czech crown fell as much as 0.3% and was bid
0.2% lower on the day at 25.577 to the euro at 1435 GMT.
    Poland's zloty was down 0.1% and Hungary's forint
 fell 0.2% to 326.10 to the euro.
    "There were some people short-euro taking profits," one
Prague dealer said.
    Stock markets also turned negative.
    The euro, the key reference currency in central Europe, hit
a two-month low after the ECB opened the door to more easing on
Thursday, but then rallied when Draghi told a news conference
the risk of recession was still low.
    "The sentiment changed after Draghi's comments," said Adam
Wandzilak, a dealer with Santander Bank Polska. "It was not a
sign of permanent change of a trend ... everything depends now
on the dollar."
    Central banks in the region have adopted a wait-and-see
stance despite higher economic growth and inflation, as loose
global monetary policy has eased pressure on them to act.
    On Tuesday, the Hungarian central bank maintained its dovish
stance at its rate-setting meeting. The Czech central bank meets
next week. After eight hikes in the last two years, it has
signalled a long pause before its next policy moves.
                   CEE        SNAPSHO   AT                      
                   MARKETS    T        1635              
                                       CET               
                              CURRENC                           
                              IES                        
                              Latest   Previou  Daily    Change
                                       s                 
                              bid      close    change   in 2019
 EURCZK  Czech                25.5770  25.5205   -0.22%   +0.51%
 =       crown                                           
 EURHUF  Hungary              326.100  325.380   -0.22%   -1.54%
 =       forint                     0        0           
 EURPLN  Polish                4.2590   4.2549   -0.10%   +0.72%
 =       zloty                                           
 EURRON  Romanian              4.7235   4.7192   -0.09%   -1.47%
 =       leu                                             
 EURHRK  Croatian              7.3850   7.3840   -0.01%   +0.34%
 =       kuna                                            
 EURRSD  Serbian              117.680  117.910   +0.20%   +0.53%
 =       dinar                      0        0           
         Note:     calculated from              1800            
         daily                                  CET      
         change                                          
                                                                
                              Latest   Previou  Daily    Change
                                       s                 
                                       close    change   in 2019
 .PX     Prague               1074.02  1075.44   -0.13%   +8.87%
                                            00           
 .BUX    Budapest             41318.9  41303.3   +0.04%   +5.57%
                                    2        7           
 .WIG20  Warsaw               2309.81  2335.41   -1.10%   +1.46%
 .BETI   Buchares             8958.71  8923.44   +0.40%   +21.33
         t                                                     %
 .SBITO  Ljubljan              869.43   870.76   -0.15%   +8.10%
 P       a                                               
 .CRBEX  Zagreb               1918.62  1914.83   +0.20%   +9.71%
 .BELEX  Belgrade  <.BELEX15   738.72   745.81   -0.95%   -3.02%
 15                >                                     
 .SOFIX  Sofia                 580.60   580.99   -0.07%   -2.33%
                              BONDS                             
                              Yield    Yield    Spread   Daily
                              (bid)    change   vs Bund  change
                                                         in
         Czech                                           spread
         Republic                                        
 CZ2YT=    2-year  <CZ2YT=RR   1.2550  -0.0230   +202bp    -4bps
 RR                >                                  s  
 CZ5YT=    5-year  <CZ5YT=RR   1.1410  -0.0130   +185bp    -3bps
 RR                >                                  s  
 CZ10YT            <CZ10YT=R   1.3460   0.0070   +171bp    -1bps
 =RR     10-year   R>                                 s  
         Poland                                                 
 PL2YT=    2-year  <PL2YT=RR   1.5280  -0.0030   +229bp    -2bps
 RR                >                                  s  
 PL5YT=    5-year  <PL5YT=RR   1.7670   0.0390   +247bp    +2bps
 RR                >                                  s  
 PL10YT            <PL10YT=R   2.0670   0.0430   +243bp    +3bps
 =RR     10-year   R>                                 s  
                   FORWARD    RATE     AGREEME                  
                                       NT                
                              3x6      6x9      9x12     3M
                                                         interba
                                                         nk
         Czech             <     2.13     2.03     1.92     2.16
         Rep       PRIBOR=>                              
         Hungary           <     0.32     0.38     0.43     0.26
                   BUBOR=>                               
         Poland            <     1.74     1.71     1.70     1.72
                   WIBOR=>                               
         Note:     are for ask prices                           
         FRA                                             
         quotes                                          
         **********************************************         
         ****************                                
                                                                
 
 (Reporting by Jason Hovet, Luiza Ilie, Krisztina Than, Anna
Włodarczak-Semczuk and Alicja Ptak)
  
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