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Zloty firms, forint and crown stable as markets wait on US vote



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-Zloty firms, forint and crown stable as markets wait on US vote</title></head><body>

By Anita Komuves

BUDAPEST, Nov 4 (Reuters) -The Polish zloty firmed while the Czech crown and Hungarian forint held steady on Monday as markets focused on the U.S. presidential election while investors were also looking ahead to central bank meetings later in the week.

The Polish zloty EURPLN= was 0.39% stronger and trading at 4.3450 per euro, as it regained losses suffered at the end of last week.

"After a time when the market was rather betting on Trump, these last polls are again tilting towards Harris," an FX trader based in Warsaw said.

"It seems to me that today we are dealing with a bit of unwinding of the Trump-trade and the zloty is also benefiting from this."

Central European currencies have suffered losses in past weeks with the Hungarian forint plunging to a 22-month low as uncertainties around the U.S. presidential election and tensions in the Middle East put pressure on emerging assets.

The Hungarian forint EURHUF= was up 0.05% to trade at 407.9 to the euro.

"The dollar is easing, which should be supporting the forint," an FX trader in Budapest said. "But that's not really happening, as CEE is not interesting at the moment. I expect volatility to start on Wednesday morning when results of the U.S. presidential election start to come in."

Democratic candidate Kamala Harris and Republican Donald Trump remain virtually tied in opinion polls ahead of Tuesday's vote.

"In general, the Harris scenario is positive for CEE and the Trump scenario negative for CEE currencies," ING wrote in a note.

"This week we believe our view will be best reflected in PLN/HUF ... in case of a Trump win, HUF will be hit the hardest, while in the case of a Harris win, PLN will have an easier road to recovery," they said.

Investors were also looking to central bank meetings in the United States, as well as more locally in the Czech Republic, Poland and Romania.

The Czech crown EURCZK= edged up 0.02% to trade at 25.3 versus the common currency.

The Czech National Bank is likely to deliver an eighth straight interest rate cut on Thursday while the National Bank of Poland holds its rate-setting meeting on Wednesday followed by Romania's central bank on Friday.




CEE MARKETS

SNAPSHOT

AT 1131 CET






CURRENCIES







Latest

Previous

Daily

Change




trade

close

in 2024

EURCZK=

Czech crown

EURCZK=

25.3000

25.3060

+0.02%

-2.37%

EURHUF=

Hungary forint

EURHUF=

407.9000

408.1000

+0.05%

-6.06%

EURPLN=

Polish zloty

EURPLN=

4.3450

4.3620

+0.39%

-0.01%

EURRON=

Romanian leu

EURRON=

4.9750

4.9734

-0.03%

-0.01%

EURRSD=

Serbian dinar

EURRSD=

116.9400

117.0500

+0.09%

+0.26%


Note: daily change

calculated from


1800 CET












Latest

Previous

Daily

Change





close

change

in 2024

.PX

Prague

.PX

1648.64

1648.3800

+0.02%

+16.59%

.BUX

Budapest

.BUX

73853.92

73865.96

-0.02%

+21.83%

.WIG20

Warsaw

.WIG20

2229.98

2205.47

+1.11%

-4.82%

.BETI

Bucharest

.BETI

17336.28

17470.35

-0.77%

+12.78%













Spread

Daily






vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

3.4280

0.0110

+111bps

-3bps

CZ5YT=RR

5-year

CZ5YT=RR

3.7590

-0.0370

+147bps

-7bps

CZ10YT=RR

10-year

CZ10YT=RR

4.0730

-0.0500

+165bps

-7bps


Poland






PL2YT=RR

2-year

PL2YT=RR

5.1260

-0.0490

+281bps

-9bps

PL5YT=RR

5-year

PL5YT=RR

5.5410

-0.0420

+325bps

-8bps

PL10YT=RR

10-year

PL10YT=RR

5.9300

-0.0010

+351bps

-2bps










FORWARD RATE AGREEMENTS







3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

3.86

3.62

3.48

4.06


Hungary

HUFFRABUBOR=

6.59

6.58

6.45

6.50


Poland

PLNFRAWIBOR=

5.73

5.38

5.07

5.85


Note: FRA quotes

are for ask prices





**************************************************************




Additional reporting by Jason Hovet in Prague, Alan Charlish and Karol Badohal in Warsaw

For related news and prices, click on the codes in brackets: All emerging market news EMRG CEEU CEE/ Spot FX rates Eastern Europe spot FX EEFX= Middle East spot FX MEFX= Asia spot FX ASIAFX= Latin America spot FX LATAMFX= Other news and reports World central bank news CEN Economic Data Guide ECONGUIDE Official rates GLOBAL/INT Emerging Diary EMRG/DIARY Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY
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