News

By 1013 GMT the Polish zloty EURPLN= was steady against the euro at 4.3060. It had hit 4.2945 in the previous session, matching a high from mid-December when it touched its strongest level since March 2020.

"For now, the broader picture for EUR-PLN is consolidation above 4.30," Alior Bank analysts wrote in a note.

"But the proximity of the psychological support (level) will make the rate sensitive today to the news from the ECB meeting and the message from (NBP governor) Adam Glapiński's conference."

The European Central Bank (ECB) is expected to keep rates at record highs when it meets today as markets gauge when it might start easing policy.

The Czech crown slipped 0.1% to 25.3810 per euro, as it has steadied in the past few weeks after weakening above 25.50 in early February.

In Hungary the forint EURHUF= slid 0.2% against the euro, trading at 394.55 and erasing some of its gains from the previous two sessions.

Hungary's central bank increased the pace of its rate cuts last week, slashing 100 basis points off its base rate to 9%.

"The forint is in a weakening trend. Strengthening back to levels around 393 was a correction. We expect more weakening. There is a technical level around 395.60 but it could weaken past that and near the 400-level," an FX trader in Budapest said.

The trader added that the weakening was still the result of the previous week's rate cut, with negative market sentiment, which started after the cut, continuing.

"Some market participants could also be repositioning their investments into the zloty, which could also be behind the weakening of the forint, as markets are not expecting a rate cut in Poland in the near future."

CEE MARKETS

SNAPSHOT

AT 1113 CET

CURRENCIES

in 2024

EURCZK=

Hungary forint

EURHUF=

Polish zloty

EURPLN=

Romanian leu

EURRON=

Serbian dinar

EURRSD=

Note: daily change

calculated from

1800 CET

in 2024

.PX

1457.74

1461.5100

.BUX

66073.92

65986.52

2338.60

2371.37

.BETI

16263.58

16239.24

vs Bund

change in

2-year

3.5890

0.0130

+075bps

+5bps

5-year

CZ5YT=RR

3.5360

-0.0010

+118bps

+1bps

10-year

CZ10YT=RR

3.7100

-0.0120

+140bps

+1bps

2-year

PL2YT=RR

5.1260

0.0640

+229bps

+10bps

5-year

PL5YT=RR

5.1760

0.0310

+282bps

+5bps

10-year

PL10YT=RR

5.3110

0.0370

+300bps

+5bps

FORWARD

3x6

6x9

9x12

3M interbank

CZKFRAPRIBOR=

HUFFRABUBOR=

PLNFRAWIBOR=

Note: FRA quotes

are for ask prices

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

(Reporting by Karol Badohal in Warsaw, Anita Komuves in Budapest and Jason Hovet in Prague; Editing by Andrew Cawthorne)

((karl.badohal@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.