By Boldizsar Gyori
BUDAPEST, Sept 5 (Reuters) - Hungary's forint led losses
in central Europe on Tuesday as markets shifted away from risk,
while the Polish zloty eased ahead of a central bank rate
decision this week.
The forint lost nearly 1% in morning trade before
cutting some losses, trading at 385.3 versus the euro at 0827
GMT, down 0.7% on the day.
"The forint is tracking worse sentiment globally," a
Budapest trader said.
"As for domestic factors, apart from the high interest rates
(in Hungary) I cannot see anything else that would be positive
right now," the trader said, adding high carry for the currency
would continue to buoy it in a wide range.
Weak Chinese service sector data on Tuesday rekindled
worries over China's sputtering post-pandemic economy, hitting
the global mood. Central Europe's stocks followed global peers
lower.
Central bank policy in the region is nearing a loosening,
but for now, rates remain high following sharp hiking cycles in
2021-2022.
The National Bank of Hungary (NBH) was the first in the
region to begin an easing cycle by cutting its one-day deposit
rate gradually by 100 basis points.
The Polish central bank (NBH) will announce a policy
decision on Wednesday and a narrow majority in a Reuters poll
expect a 25 basis-point cut, despite inflation remaining in
double-digits in August.
The zloty traded flat at 4.48 versus the euro.
"The (EUR/PLN) pair's rate has been consolidating around
4.45-4.48 for two weeks. Yesterday there was a slight increase
to around 4.47. Today, waiting for the MPC and impulses from the
core markets will continue," Alior Bank said in a note.
Elsewhere in the region, the Czech crown traded
for 24.143 against the euro, stuck in its recent range.
Bank CSOB said improving data this week could give it an
impulse.
"For the Czech crown there surely isn't a positive
environment, with U.S. yields remaining high and the dollar is
also remaining strong," CSOB said.
CEE SNAPSHO AT
MARKETS T 1027
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2023
EURCZK= Czech
EURHUF= Hungary 0 0
EURPLN= Polish
EURRON= Romanian
EURRSD= Serbian 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change
s
close change in 2023
.PX Prague 1334.52 1336.39 -0.14% +11.05
00 %
.BUX Budapest 55479.7 55663.5 -0.33% +26.68
2 0 %
.WIG20 Warsaw 2020.87 2025.59 -0.23% +12.77
%
.BETI Buchares 13171.9 13354.1 -1.36% +12.93
t 0 1 %
Spread Daily
vs Bund change
in
Czech spread
Republic
CZ2YT=R 2-year s
CZ5YT=R 5-year s
CZ10YT= s
Poland
PL2YT=R 2-year s
PL5YT=R 5-year s
PL10YT= s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech 6.88 6.13 5.19 7.10
Rep
Hungary 11.25 9.72 8.55 13.19
Poland 5.83 5.10 4.62 6.64
Note: are for ask
FRA prices
quotes
*********************************************
*****************
(Reporting by Anna Wlodarczak-Semczuk in Warsaw, Boldizsar
Gyori in Budapest, Robert Muller in Prague; Editing by Jan
Harvey and Angus MacSwan)