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CEE currencies slightly firmer ahead of Jackson Hole speech



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By Boldizsar Gyori

BUDAPEST, Aug 23 (Reuters) -Central-European currencies firmed slightly on Friday as investors waited for a key speech by U.S. Federal Reserve Chairman Jerome Powell scheduled for later today after U.S. economic data gave the green light for policy-easing.

Investors were also in a wait-and-see mode ahead of an interest-rate decision by Hungary's central bank scheduled for next Tuesday.

Hungary's forint EURHUF= was at 393.3 by 0758 GMT in rangebound trading.

"I expect the forint to trade sideways until next Tuesday's rate-decision," a local FX-trader said.

"We're also waiting for Powell's speech, although don't expect a surprise, despite voices that suggest the FED will start by a 0.50 bps cut, and not a 0.25. If this will be the case, that will be supportive for the forint."

Central bank officials from around the world have gathered in Jackson Hole, Wyoming, for the annual Economic Symposium, where investors will be focused on the timing and extent of the FED's policy easing.

A readout of the FED'S July meeting showed a "vast majority" of policymakers agreed the policy easing likely would begin next month.

Elsewhere in the region, the Czech crown EURCZK= traded at 25.06.

Czech utility CEZ dropped over 2% on Thursday after the Finance Ministry said it would drop a previously mooted idea to end a windfall tax on energy companies and banks next year, which would be one year earlier than the current law states.

CEZ is by far the largest payer of the tax, and has said it may pay around 27-34 billion crowns this year. The stock was down 0.5% after opening on Friday.

The Polish zloty EURPLN= also remained in range, trading at 4.278 to the common currency.

"The zloty is slightly stronger, basically we are trading in a range... (it is ) flow driven," a Warsaw-based currency trader said.

Meanwhile, shares in Polish supermarket chain Dino DNP.WA fell 13% after its second quarter results missed market expectations, with the Warsaw exchange index .WIG20 trading sideways.



CEE MARKETS

SNAPSHOT

AT 0958 CET






CURRENCIES







Latest

Previous

Daily

Change




trade

close

change

in 2024

EURCZK=

Czech crown

EURCZK=

25.0600

25.0960

+0.14%

-1.43%

EURHUF=

Hungary forint

EURHUF=

393.3000

393.7000

+0.10%

-2.57%

EURPLN=

Polish zloty

EURPLN=

4.2780

4.2825

+0.11%

+1.55%

EURRON=

Romanian leu

EURRON=

4.9765

4.9770

+0.01%

-0.04%

EURRSD=

Serbian dinar

EURRSD=

116.9800

117.0400

+0.05%

+0.23%


Note: daily change

calculated from



1800 CET












Latest

Previous

Daily

Change





close

change

in 2024

.PX

Prague

.PX

1581.49

1581.2900

+0.01%

+11.84%

.BUX

Budapest

.BUX

72961.02

73239.70

-0.38%

+20.36%

.WIG20

Warsaw

.WIG20

2399.07

2400.05

-0.04%

+2.39%

.BETI

Bucharest

.BETI

18410.54

18427.10

-0.09%

+19.77%













Spread

Daily






vs Bund

change in


Czech Republic





spread

CZ2YT=RR

2-year

CZ2YT=RR

3.3430

-0.0040

+094bps

-1bps

CZ5YT=RR

5-year

CZ5YT=RR

3.4700

0.0060

+131bps

+1bps

CZ10YT=RR

10-year

CZ10YT=RR

3.7410

0.0020

+150bps

+0bps


Poland






PL2YT=RR

2-year

PL2YT=RR

4.9160

-0.0030

+251bps

-1bps

PL5YT=RR

5-year

PL5YT=RR

5.1120

0.0000

+295bps

+0bps

PL10YT=RR

10-year

PL10YT=RR

5.3580

-0.0160

+311bps

-2bps










FORWARD RATE AGREEMENTS







3x6

6x9

9x12

3M interbank


Czech Rep

CZKFRAPRIBOR=

3.91

3.53

3.28

4.40


Hungary

HUFFRABUBOR=

6.67

6.25

5.87

6.54


Poland

PLNFRAWIBOR=

5.73

5.38

4.93

5.85


Note: FRA quotes

are for ask prices





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






Written by Boldizsar Gyori in Budapest; additional reporting by Jan Lopatka in Prague and Alan Charlish in Warsaw; Editing by Sharon Singleton

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
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