BUCHAREST, Dec 10 (Reuters) - The Hungarian forint and
Polish zloty firmed against the euro on Thursday ahead of a
European Union summit where the two governments could reach an
agreement to unblock an EU financial package, while other
central European currencies were mixed.
Poland and Hungary have been blocking the 1.8 trillion euro
2021-2027 EU budget and coronavirus recovery fund drawn up for
the 27 member states because they oppose a condition linking the
release of funds to rule-of-law standards.
Officials said on Wednesday the countries had provisionally
accepted an EU budget proposal from the bloc"s German presidency
and were awaiting further approval from other skeptical member
states at the two-day summit.
"A final deal signed by all parties at the 2-day EU summit
would allow further modest forint strengthening," Raiffeisen
said in a note. "In case of the zloty ... further strengthening
will likely be dependent mainly on global sentiment which
remains key for the currency."
By 1015 GMT, the zloty was up 0.1% against the
euro and the forint 0.3% at 355.6900.
Brokerage Equilor said the next support level for the forint
was near 353.7.
Elsewhere in the region, the Czech crown was flat
versus the single currency, while the Romanian leu
edged 0.1% lower on the day, weighed down by political
uncertainty after a parliamentary election.
Romania"s ruling National Liberal Party (PNL) will propose
Finance Minister Florin Citu as the next prime minister, senior
party officials decided on Wednesday.
The centrist president is expected to call parties for
consultations later this week.
Markets were also awaiting a European Central Bank meeting
where analysts expect fresh stimulus measures to be unveiled.
"Waiting for these events effectively improved the
investment sentiment in the previous days and weeks," Bank
Millennium said in a research note.
"Therefore, we do not expect today"s decisions to have a
significant impact on sentiment, although they will certainly
fit in with the current risk-on market strategy."
Stocks were mixed, with Budapest"s index up 0.8% but
Prague"s down 0.5% on the day.
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