By Radu-Sorin Marinas
BUCHAREST, Nov 20 (Reuters) - Hungary's forint traded softer
on Wednesday after the central bank kept interest rates
unchanged the previous day, ignoring a rise in inflation to near
the top of its target range.
Central Europe's worst-performing currency with a 3.7% loss
versus the euro in 2019, the forint reversed its late-October
rally earlier this month, and was again trading within sight of
its record lows at 336 per euro hit on Sept. 27.
At 1110 GMT, the unit traded at 333.3 to the euro,
down 0.2 % on the day.
"Combined with the recent weakness of the forint and the
MNB's emphasis on data-dependent policy making, we continue to
think the MNB (National Bank of Hungary) is unlikely to ease
further in the December meeting," Goldman Sachs analysts said.
"However, given the MNB's view that risks remain skewed to
the downside, it suggests that risks to monetary policy are also
skewed towards further easing," they added in a note.
Other central European currencies were also softer, with the
Polish zloty easing 0.17% and the Romanian leu
edging down 0.1%.
The Czech crown was up 0.16%, with a Prague-based
dealer seeing lower liquidity as helping gains as the unit
settles into a range between 25.500-25.600, with players waiting
for further clues on interest rates.
The Czech central bank is rare in Europe in still debating
whether policy tightening is needed to fight domestic
inflationary pressures. Most analysts expect rate stability
through 2020.
Regional stocks mostly fell, mirroring a general mode in
emerging stocks as tensions flared again between Washington and
Beijing, adding uncertainty over whether the two sides can end a
trade dispute that is seen as a key risk to global economic
growth.
Warsaw led losses with a 1.1% fall, followed by
Prague and Budapest with 0.4% and 0.1%
respectively.
CEE SNAPSHO AT 1210
MARKETS T CET
CURRENC
IES
Latest Previous Daily Change
bid close change in 2019
Czech <EURCZK= 25.5300 25.5750 +0.18% +0.69%
crown >
Hungary <EURHUF= 333.180 332.9300 -0.08% -3.63%
forint > 0
Polish <EURPLN= 4.2945 4.2867 -0.18% -0.11%
zloty >
Romanian <EURRON= 4.7780 4.7750 -0.06% -2.60%
leu >
Croatian <EURHRK= 7.4420 7.4420 +0.00% -0.43%
kuna >
Serbian <EURRSD= 117.390 117.4900 +0.09% +0.78%
dinar > 0
Note: calculated from 1800
daily CET
change
Latest Previous Daily Change
close change in 2019
Prague 1076.56 1079.7300 -0.29% +9.12%
Budapest 43597.7 43618.78 -0.05% +11.39%
4
Warsaw 2179.22 2207.25 -1.27% -4.28%
Bucharest 9713.89 9706.24 +0.08% +31.56%
Ljubljana <.SBITOP 884.78 886.48 -0.19% +10.01%
>
Zagreb 1997.60 1994.41 +0.16% +14.23%
Belgrade <.BELEX1 764.68 766.24 -0.20% +0.39%
5>
Sofia 553.83 554.40 -0.10% -6.83%
BONDS
Yield Yield Spread Daily
(bid) change vs Bund change in
Czech spread
Republic
2-year <CZ2YT=R 1.4140 0.0120 +205bp +2bps
R> s
5-year <CZ5YT=R 1.2970 0.0530 +191bp +7bps
R> s
10-year <CZ10YT= 1.4770 -0.0260 +185bp +1bps
RR> s
Poland
2-year <PL2YT=R 1.4000 -0.0160 +204bp -1bps
R> s
5-year <PL5YT=R 1.7930 -0.0380 +241bp -2bps
R> s
10-year <PL10YT= 2.0640 -0.0310 +244bp +0bps
RR> s
FORWARD RATE AGREEMENT
3x6 6x9 9x12 3M
interbank
Czech Rep 2.25 2.25 2.18 2.18
<PRIBOR=
>
Hungary 0.24 0.30 0.34 0.19
Poland 1.73 1.70 1.67 1.71
Note: FRA are for ask
quotes prices
************************************************
**************
(Reporting by Jason Hovet in Prague; Editing by Alex
Richardson)
