Polish zloty firms as traders brace for rate decision
By Alan Charlish
WARSAW, July 3 (Reuters) -The Polish zloty EURPLN= strengthened on Wednesday, as traders looked ahead to an interest rate decision that is likely to see the cost of credit remain on hold and the second round of parliamentary elections in France.
At a time when markets are expecting monetary policy easing both in core markets and elsewhere in central Europe, National Bank of Poland Governor Adam Glapinski has ruled out rate cuts for the country this year, supporting the zloty.
Markets have also been eyeing elections in France, with the euro and central European currencies firming earlier this week after the far-right's victory in the first round fell slightly short of some expectations, leaving the final result dependent on party deals before a second round on Sunday.
The zloty was trading 0.26% firmer against the euro at 4.3020, as of 0835 GMT.
"I think it's all about the weekend and the French elections ... the zloty will be tracing the global sentiment, so dependent on what euro/dollar does," said a Warsaw-based currency trader.
"The local event of the day is the Monetary Policy Council (MPC) decision - the market expects no change and probably as before Glapinski will be hawkish so that should help the zloty slightly."
The Czech Crown EURCZK= and the zloty will firm over the next six months, a Reuters poll showed on Wednesday, adding that while the Hungarian forint EURHUF= is expected to add to its recent losses as the most vulnerable currency in the CEE region.
The crown and the forint were flat against the euro on Wednesday, at 25.1830 and 394.90, respectively.
Benchmark 10-year Polish bond yields PL10YT=RR were around 2 basis points lower at 5.785%, while Czech 10-year yields were CZ10YT=RR were almost one basis point higher at 4.203%
In comments published on Tuesday, the Polish finance ministry's debt chief told Reuters that Poland could cut supply of domestic debt by at least one-fifth in the third quarter, compared with prior-quarter levels, while fourth-quarter issuance levels were still flexible.
Poland could issue a benchmark-sized yen bond in the fourth quarter, and plans to be present in the Japanese debt market on a permanent basis, he added.
CEE MARKETS | SNAPSHOT | AT 1035 CET | ||||
CURRENCIES | ||||||
Latest | Previous | Daily | Change | |||
trade | close | change | in 2024 | |||
EURCZK= | Czech crown | EURCZK= | 25.1830 | 25.1830 | +0.00% | -1.91% |
EURHUF= | Hungary forint | EURHUF= | 394.9000 | 394.8500 | -0.01% | -2.97% |
EURPLN= | Polish zloty | EURPLN= | 4.3020 | 4.3130 | +0.26% | +0.99% |
EURRON= | Romanian leu | EURRON= | 4.9773 | 4.9779 | +0.01% | -0.06% |
EURRSD= | Serbian dinar | EURRSD= | 116.9500 | 117.0500 | +0.09% | +0.25% |
Note: daily change | calculated from | 1800 CET | ||||
Latest | Previous | Daily | Change | |||
close | change | in 2024 | ||||
.PX | Prague | .PX | 1563.92 | 1559.7400 | +0.27% | +10.60% |
.BUX | Budapest | .BUX | 71644.96 | 71456.00 | +0.26% | +18.19% |
.WIG20 | Warsaw | .WIG20 | 2550.27 | 2528.44 | +0.86% | +8.85% |
.BETI | Bucharest | .BETI | 18231.83 | 18229.27 | +0.01% | +18.61% |
Spread | Daily | |||||
vs Bund | change in | |||||
Czech Republic | spread | |||||
CZ2YT=RR | 2-year | CZ2YT=RR | 3.9990 | NULL | +106bps | #VALUE! |
CZ5YT=RR | 5-year | CZ5YT=RR | 4.0130 | -0.0280 | +141bps | -4bps |
CZ10YT=RR | 10-year | CZ10YT=RR | 4.2030 | 0.0070 | +160bps | +1bps |
Poland | ||||||
PL2YT=RR | 2-year | PL2YT=RR | 5.1630 | -0.0010 | +222bps | -3bps |
PL5YT=RR | 5-year | PL5YT=RR | 5.6110 | -0.0390 | +301bps | -5bps |
PL10YT=RR | 10-year | PL10YT=RR | 5.7850 | -0.0240 | +318bps | -2bps |
FORWARD RATE AGREEMENTS | ||||||
3x6 | 6x9 | 9x12 | 3M interbank | |||
Czech Rep | CZKFRAPRIBOR= | 4.34 | 4.11 | 3.93 | 4.70 | |
Hungary | HUFFRABUBOR= | 7.15 | 6.87 | 6.61 | 6.87 | |
Poland | PLNFRAWIBOR= | 5.76 | 5.67 | 5.41 | 5.85 | |
Note: FRA quotes | are for ask prices | |||||
************************************************************** |
Reporting by Alan Charlish in Warsaw and Boldizsar Gyori in Budapest; Editing by Sherry Jacob-Phillips
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
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.