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FX firmer as forint still set for first weekly loss since early June



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-FX firmer as forint still set for first weekly loss since early June</title></head><body>

PRAGUE, July 26 (Reuters) -Central Europe's currencies pushed higher for a second straight day, although the Hungarian forint was set for its first weekly loss in six weeks and the Czech crown was just off a multi-month low as interest rate cuts stay in focus.

The forint fell this week after Hungary's central bank delivered a 15th successive rate cut and said more could come this year.

Focus is turning to the Czech central bank, which meets next week and markets are weighing whether it will slow the pace of its easing cycle as signalled previously.

The forint EURHUF= had gained 0.2% on the day by 0857 GMT, trading at 391.50 to the euro. It has fallen from the 390 level this week.

"EUR/HUF could take a breather and stabilize for a while if HUF rates don't follow the core market today. However, we remain on the bearish side with more fair levels at 394 and higher," ING said.

A slowdown in the Czech rate-cutting cycle to 25-basis-point steps could help the crown next week, Komercni Banka analysts said.

The crown EURCZK= inched up 0.1% to 25.378 per euro after touching its lowest since February at 25.453 this week.

In Poland, the zloty has fared better than peers this year with a 1.5% gain so far in 2024 as the central bank there has held interest rates steady.

The zloty EURPLN= was up 0.2% at 4.279 to the euro and is set to take cues from global sentiment, which was on stronger footing.

U.S. economic data from overnight gave some cause for optimism, with economic growth faster than expected in the second quarter and inflation cooling. That helped dispel worries that the expansion was in danger of an abrupt end, while also supporting wagers for a Federal Reserve interest rate cut in September.

Bank Millennium said the data would support the euro/dollar - with the euro the main reference currency in central Europe - and "consequently also the zloty and other currencies in our region" amid lower liquidity amid the holiday season.



CEE MARKETS

SNAPSHOT

AT 1057 CET





CURRENCIES






Latest

Previous

Daily

Change



trade

close

change

in 2024

Czech crown

EURCZK=

25.3780

25.3960

+0.07%

-2.67%

Hungary forint

EURHUF=

391.5000

392.2000

+0.18%

-2.12%

Polish zloty

EURPLN=

4.2790

4.2880

+0.21%

+1.53%

Romanian leu

EURRON=

4.9698

4.9685

-0.03%

+0.09%

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

Prague

.PX

1604.88

1600.3600

+0.28%

+13.50%

Budapest

.BUX

73187.29

72745.29

+0.61%

+20.73%

Warsaw

.WIG20

2413.96

2415.63

-0.07%

+3.03%

Bucharest

.BETI

18550.19

18448.45

+0.55%

+20.68%











Spread

Daily





vs Bund

change in

Czech Republic





spread

2-year

CZ2YT=RR

3.6510

0.0220

+095bps

+0bps

5-year

CZ5YT=RR

3.6730

-0.0150

+130bps

-5bps

10-year

CZ10YT=RR

3.8130

0.0060

+137bps

-3bps

Poland






2-year

PL2YT=RR

5.0840

-0.0270

+238bps

-5bps

5-year

PL5YT=RR

5.4720

-0.0150

+310bps

-5bps

10-year

PL10YT=RR

5.6420

-0.0010

+320bps

-4bps








FORWARD RATE AGREEMENTS






3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

4.08

3.74

3.46

4.57

Hungary

HUFFRABUBOR=

6.34

6.09

5.72

6.63

Poland

PLNFRAWIBOR=

5.83

5.69

5.38

5.86

Note: FRA quotes

are for ask prices





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












Reporting by Jason Hovet in Prague, Boldizsar Gyori in Budapest and Pawel Florkiewicz in Warsaw; Editing by Toby Chopra

For related news and prices, click on the codes in brackets:
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Other news and reports
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