WARSAW, Jan 16 (Reuters) - The Czech crown
retreated from a seven-year high in early trade on Thursday, as
it approached a new resistance level after a blistering start to
the year.
The crown has been the region's best-performing currency so
far this year, boosted by speculation that rates could rise in
the face of stronger inflation. On Wednesday it hit an intraday
high of 25.056, its strongest in seven years.
At 0853 GMT the crown was down 0.08% on the day against the
euro at 25.102. A trader said the quick move had attracted some
euro buyers at the current levels.
Analysts say a break on Wednesday of the crown's previous
high of 25.120 - touched after the central bank ended in 2017 an
intervention regime that had kept the crown artificially weak -
opened space for a possible test of the psychological 25 level.
"The crown continues to be driven by a wave of falling risk
aversion," CSOB said, adding that its rate differential over the
euro zone was also boosting it, especially amid growing
expectations of possible further Czech rate hikes this year.
It added, though, that the crown's strength was already
helping to tighten monetary policy, which could lead to rate
stability this year.
The Hungarian forint gave up 0.24% to be bid 333.4
against the euro, the Polish zloty slipped 0.10% to
4.2329 while the Romanian leu was little changed at
4.7785.
A Warsaw-based currency trader attributed the move in the
zloty to profit-taking following a strong run in anticipation of
the signing of the U.S.-China trade deal.
Stocks were mixed, with Warsaw's WIG 20 up 0.38%,
while Prague's PX index slipped 0.36% and stocks in
Budapest were little changed.
While the signing of the eagerly awaited Phase 1 trade deal
between the United States and China has provided some relief to
global equity markets, investors remain wary as a number of
issues remain unresolved.
In Hungary, the debt agency was due to offer 20-year bonds
for the first time as part of a government strategy to lengthen
the maturity of outstanding debt.
A Budapest fixed income trader said it was difficult to
assess the yield level where the new bond could be sold, but
based on their expectations, the auction yield could be around
3%, looking at the closest maturity benchmark bond, the 15-year
paper.
CEE SNAPSHO AT
MARKETS T 1105
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
EURCZK Czech <EURCZK 25.1200 25.0985 -0.09% +1.24%
= crown =>
EURHUF Hungary <EURHUF 333.800 332.975 -0.25% -0.80%
= forint => 0 0
EURPLN Polish <EURPLN 4.2340 4.2295 -0.11% +0.53%
= zloty =>
EURRON Romanian <EURRON 4.7800 4.7795 -0.01% +0.17%
= leu =>
EURHRK Croatian <EURHRK 7.4440 7.4440 +0.00% +0.02%
= kuna =>
EURRSD Serbian <EURRSD 117.490 117.520 +0.03% +0.07%
= dinar => 0 0
Note: calculated from 1800
daily CET
change Latest Previou Daily Change
s
close change in 2020
.PX Prague 1127.52 1133.09 -0.49% +1.07%
00
.BUX Budapest 44582.3 44565.0 +0.04% -3.26%
3 3
.WIG20 Warsaw <.WIG20 2168.40 2165.08 +0.15% +0.85%
>
.BETI Buchares 10090.1 10082.0 +0.08% +1.13%
t 0 0
.SBITO Ljubljan <.SBITO 961.31 973.79 -1.28% +3.83%
P a P>
.CRBEX Zagreb <.CRBEX 2044.65 2048.45 -0.19% +1.35%
>
.BELEX Belgrade <.BELEX 783.24 803.31 -2.50% -2.30%
15 15>
.SOFIX Sofia <.SOFIX 581.26 581.34 -0.01% +2.31%
> Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 1.7520 -0.0160 +235bp -1bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 1.5390 -0.0210 +205bp -1bps
RR RR> s
CZ10YT <CZ10YT 1.7140 -0.0080 +193bp +0bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 1.5150 -0.0040 +211bp +0bps
RR RR> s
PL5YT= 5-year <PL5YT= 1.9510 0.0140 +247bp +2bps
RR RR> s
PL10YT <PL10YT 2.2570 0.0200 +247bp +2bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech <CZKFRA 2.28 2.28 2.26 2.17
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.27 0.38 0.46 0.16
><BUBOR
=>
Poland <PLNFRA 1.75 1.75 1.79 1.71
><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
****************** (Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague
and Krisztina Than in Budapest
Editing by Gareth Jones)
Our Standards: The Thomson Reuters Trust Principles.