PRAGUE, Sept 20 (Reuters) - The Hungarian forint firmed for a third straight day on Friday, after touching a record low this week, as central Europe's currencies edged up due to some hope Britain could still reach a deal to avoid a disorderly exit from the European Union.
Markets also turned some attention to central bank meetings next week in Hungary and the Czech Republic, where rate setters are widely expected to hold firm with their monetary policy despite the European Central Bank (ECB) and U.S. Federal Reserve reverting to easing.
A Reuters poll on Thursday showed analysts see Hungary's central bank keeping its base rate steady even through 2020, ignoring pressure on the forint, which has plumbed new lows.
The forint strengthened 0.1% against the euro in early trade on Friday, bid at 332.39, off an all-time low of 334.35. Majority of analysts in the Reuters poll predicted the forint was unlikely to weaken to as far as 340 to the euro this weak.
Markets got some relief after European Commission President Jean-Claude Juncker said on Thursday a Brexit deal was still possible.
Britain leaving without a deal in place at the end of October would hurt trading in Europe, having a large effect on central Europe's car sector-driven economies.
The Polish zloty ticked up a touch to 4.342 to the euro, trying to snap a week-long losing streak, while Romanian leu also leaned firmer, gaining a touch to 4.746 and the Czech crown was steady at 25.90 to the euro.
The crown was in a holding pattern before the Czech central bank meets next Wednesday. The bank had hiked interest rates for the eighth time in two years in May, but is now guiding for stability as it balances domestic price pressures with weakness abroad.
"We are staying under the relative strength of the dollar in a slightly negative view (with the crown). If positive news around Brexit were to be confirmed this could help central Europe," CSOB said.
"The crown is slowly looking now to the central bank meeting, but rate stability by itself won't bring new life to the currency."
Despite solid economic growth in central Europe, the region's currencies have been pressured by investor worries over a slowdown hitting from the euro zone, global trade tensions between the United States and China, and an unclear Brexit path.
Due to weakening trade and Brexit fears, central European euro zone member Slovakia slashed its growth forecasts by almost a third on Thursday, expecting 2019 economic output to expand by 2.4%, a cut of 1.1 percentage points from an earlier outlook.
CEE SNAPSH AT
MARKETS OT 0956
CET
CURREN
CIES
Latest Previo Daily Change
us
bid close change in
2019
EURCZK Czech <EURCZK 25.900 25.896 -0.02% -0.75%
= crown => 0 0
EURHUF Hungary <EURHUF 332.39 332.76 +0.11 -3.40%
= forint => 00 50 %
EURPLN Polish <EURPLN 4.3420 4.3423 +0.01 -1.21%
= zloty => %
EURRON Romania <EURRON 4.7455 4.7468 +0.03 -1.93%
= n leu => %
EURHRK Croatia <EURHRK 7.4000 7.3993 -0.01% +0.14
= n kuna => %
EURRSD Serbian <EURRSD 117.42 117.52 +0.09 +0.75
= dinar => 00 00 % %
Note: calculated from 1800
daily CET
change
Latest Previo Daily Change
us
close change in
2019
.PX Prague 1053.2 1053.3 -0.01% +6.76
8 600 %
.BUX Budapes 40900. 40922. -0.05% +4.50
t 65 30 %
.WIG20 Warsaw <.WIG20 2191.7 2191.6 +0.01 -3.73%
> 3 1 %
.BETI Buchare 9366.1 9358.8 +0.08 +26.8
st 7 2 % 5%
.SBITO Ljublja <.SBITO 859.42 861.90 -0.29% +6.86
P na P> %
.CRBEX Zagreb <.CRBEX 1901.0 1897.1 +0.20 +8.70
> 2 6 % %
.BELEX Belgrad <.BELEX 760.29 758.45 +0.24 -0.18%
15 e 15> %
.SOFIX Sofia <.SOFIX 578.67 578.99 -0.06% -2.66%
>
BONDS
Yield Yield Spread Daily
(bid) change vs change
Bund in
Czech spread
Republi
c
CZ2YT= <CZ2YT= 1.2790 -0.047 +199b -5bps
RR 2-year RR> 0 ps
CZ5YT= <CZ5YT= 1.0720 -0.003 +181b +0bps
RR 5-year RR> 0 ps
CZ10YT <CZ10YT 1.3920 0.0030 +190b +0bps
=RR 10-year =RR> ps
Poland
PL2YT= <PL2YT= 1.4850 0.0000 +220b +0bps
RR 2-year RR> ps
PL5YT= <PL5YT= 1.7990 -0.014 +253b -1bps
RR 5-year RR> 0 ps
PL10YT <PL10YT 2.0570 -0.017 +256b -2bps
=RR 10-year =RR> 0 ps
FORWARD RATE AGREEM
ENT
3x6 6x9 9x12 3M
interb
ank
Czech <CZKFRA 2.16 2.09 1.99 2.14
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.28 0.33 0.37 0.21
><BUBOR
=>
Poland <PLNFRA 1.74 1.72 1.69 1.72
><WIBOR
=>
Note: are for ask
FRA prices
quotes
****************************************
**********************