Forex gains led by zloty ahead of interest rate meeting
WARSAW, Aug 30 (Reuters) -Central Eastern European currencies firmed on Friday, led higher by the Polish zloty, ahead of next week's central bank meeting on interest rates, after a flash estimate inflation reading for August showed inflation edging higher.
Most emerging market currencies were higher on Friday as the dollar weakened ahead of crucial U.S. inflation data that could offer clues on the size of possible interest rate cuts by the Federal Reserve next month.
Data released on Friday in Poland meanwhile showed Poland's consumer inflation rising to 4.3% in August, slightly above expectations, driven mainly by rising energy prices.
Poland's rate setters, who have cited inflation uncertainty in their decisions on keeping borrowing costs steady since October, are expected to prolong their pause next Wednesday, but their commentary will be scrutinised for new signs of when easing could resume.
By 0926 GMT the Polish zloty EURPLN= was up 0.2% against the euro at 4.2755, at the centre point of the 4.24-4.31 range where it has been trading since mid-August.
"The 4.28 (level) attracts like a magnet ... We assume that if the zloty is close to this level, it is actually at a point of short-term equilibrium for the time being and is waiting for impulses that could break it from this point," Bank Millennium markets analyst Mateusz Sutowicz said.
"We are counting that September central bank meetings, including the local Monetary Policy Council, may be events that lead to minor changes in the financial markets."
Sutowicz said that today's inflation print wasn't impacting the zloty.
The Czech crown EURCZK= firmed 0.2% to 25.0250 per euro, hovering near August's high hit earlier in the week.
Domestic demand fuelled by brisker government expenditure drove the Czech economy's slow recovery in the second quarter, updated statistics office data showed on Friday, with growth muted by a sluggish industrial performance.
The Hungarian forint EURHUF= edged 0.1% higher to 392.50 per euro, also trading off its August high.
CEE MARKETS | SNAPSHOT | AT 1126 CET | |||
CURRENCIES | |||||
Latest | Previous | Daily | Change | ||
trade | close | change | in 2024 | ||
Czech crown | EURCZK= | 25.0250 | 25.0615 | +0.15% | -1.29% |
Hungary forint | EURHUF= | 392.5000 | 393.0000 | +0.13% | -2.37% |
Polish zloty | EURPLN= | 4.2755 | 4.2840 | +0.20% | +1.61% |
Romanian leu | EURRON= | 4.9775 | 4.9778 | +0.01% | -0.06% |
Serbian dinar | EURRSD= | 116.9200 | 117.0200 | +0.09% | +0.28% |
Note: daily change | calculated from | 1800 CET | |||
Latest | Previous | Daily | Change | ||
close | change | in 2024 | |||
Prague | .PX | 1587.09 | 1582.9900 | +0.26% | +12.24% |
Budapest | .BUX | 72982.34 | 73193.79 | -0.29% | +20.39% |
Warsaw | .WIG20 | 2410.22 | 2403.14 | +0.29% | +2.87% |
Bucharest | .BETI | 18293.25 | 18235.55 | +0.32% | +19.01% |
Spread | Daily | ||||
vs Bund | change in | ||||
Czech Republic | spread | ||||
2-year | CZ2YT=RR | 3.3720 | -0.0110 | +102bps | +0bps |
5-year | CZ5YT=RR | 3.5920 | -0.0100 | +144bps | +1bps |
10-year | CZ10YT=RR | 3.8570 | 0.0080 | +160bps | +3bps |
Poland | |||||
2-year | PL2YT=RR | 4.8290 | -0.0740 | +248bps | -6bps |
5-year | PL5YT=RR | 5.2090 | -0.0600 | +306bps | -4bps |
10-year | PL10YT=RR | 5.4620 | -0.0840 | +320bps | -6bps |
FORWARD | |||||
3x6 | 6x9 | 9x12 | 3M interbank | ||
Czech Rep | CZKFRAPRIBOR= | 3.93 | 3.61 | 3.36 | 4.37 |
Hungary | HUFFRABUBOR= | 6.57 | 6.18 | 5.78 | 6.51 |
Poland | PLNFRAWIBOR= | 5.74 | 5.44 | 4.98 | 5.85 |
Note: FRA quotes | are for ask prices | ||||
************************************************************** |
Reporting by Karol Badohal in Warsaw; Editing by David Holmes
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
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.