PRAGUE, Jan 6 (Reuters) - Hungary's forint retreated to a
key level against the euro on Monday as central Europe's
currencies gave up some recent gains amid growing U.S.-Iranian
tensions that hit sentiment in the region.
The Czech crown also fell and backed off 20-month peaks hit
last week, bidding at 25.386 to the euro, down 0.2%.
The forint, after touching a nearly two-week high in new
year trade, fluctuated around 330 per euro as traders expected a
test of the resistance level. It was off 0.2% at 330.05 at 0923
GMT.
"Investors are nervous, and the positive story is less
visible for the forint right now," a Budapest-based dealer said.
Investors grew cautious about riskier assets, worried that
the killing of Iran's most prominent military commander by the
United States could trigger a broader Middle East conflict.
The new worries - after the region's currencies were hit for
much of 2019 by global trade concerns and uncertainty over
Britain's European Union divorce - were hitting sentiment in the
region following a rise in assets in recent months.
Stock markets dropped, with Budapest falling 1.7% and
Prague down 0.8%
Poland's zloty was flat while local markets were
closed for a holiday. Romania's leu was also steady.
Romanian investors were geared up for the country's first
bond auction of 2020, with the finance ministry offering debt
due in 2023.
"It will be interesting to see whether the new levels are
still interesting for investors, as the yields have shifted
almost 30 basis points lower from last month’s similar auction,"
ING analysts said in a note.
"We are a touch cautious on the result and expect an average
yield around secondary market bids of 3.90%."
Czech bond yields were mixed and forward rate markets
discounted any chances of interest rate cuts ahead. The Czech
central bank, the most hawkish in the region, has voted against
a hike at the past three meetings.
Minutes from the bank's Dec. 18 meeting, published on
Friday, showed rate cuts remain off the table, analysts said.
CEE SNAPSHO AT
MARKETS T 1023
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
EURCZK Czech <EURCZK 25.3860 25.3460 -0.16% +0.18%
= crown =>
EURHUF Hungary <EURHUF 330.050 329.480 -0.17% +0.33%
= forint => 0 0
EURPLN Polish <EURPLN 4.2425 4.2422 -0.01% +0.33%
= zloty =>
EURRON Romanian <EURRON 4.7750 4.7766 +0.03% +0.28%
= leu =>
EURHRK Croatian <EURHRK 7.4517 7.4453 -0.09% -0.08%
= kuna =>
EURRSD Serbian <EURRSD 117.400 117.570 +0.14% +0.14%
= dinar => 0 0
Note: calculated from 1800
daily CET
change Latest Previou Daily Change
s
close change in 2020
.PX Prague 1111.72 1121.44 -0.87% -0.35%
00
.BUX Budapest 45353.5 46141.2 -1.71% -1.58%
1 2
.WIG20 Warsaw <.WIG20 2173.97 2173.97 +0.00% +1.11%
>
.BETI Buchares 9911.45 9921.59 -0.10% -0.66%
t
.SBITO Ljubljan <.SBITO 927.59 930.97 -0.36% +0.19%
P a P>
.CRBEX Zagreb <.CRBEX 2036.69 2036.69 +0.00% +0.95%
>
.BELEX Belgrade <.BELEX 801.69 801.69 +0.00% +0.00%
15 15>
.SOFIX Sofia <.SOFIX 569.86 568.60 +0.22% +0.30%
>
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 1.7740 0.0660 +241bp +8bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 1.4290 -0.0580 +200bp -5bps
RR RR> s
CZ10YT <CZ10YT 1.6070 -0.0130 +191bp +1bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 1.4890 0.0080 +212bp +2bps
RR RR> s
PL5YT= 5-year <PL5YT= 1.7890 -0.0180 +236bp -1bps
RR RR> s
PL10YT <PL10YT 2.0690 -0.0050 +237bp +1bps
=RR 10-year =RR> s
FORWARD RATE AGREEME
NT
3x6 6x9 9x12 3M
interba
nk
Czech <CZKFRA 2.25 2.25 2.19 2.17
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.24 0.30 0.42 0.16
><BUBOR
=>
Poland <PLNFRA 1.71 1.69 1.68 1.71
><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Jason Hovet in Prague, Marton Dunai in Budapest
and Radu Marinas in Bucharest, Editing by William Maclean)
Our Standards: The Thomson Reuters Trust Principles.