CEE MARKETS-Polish zloty firms despite c.bank chief's rate-cut comments

  • 12/30/2020
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Dec 30 (Reuters) - The Polish zloty pared some of the previous day"s losses in morning trade on Wednesday amid a positive global mood, even after a surprise comment from the central bank governor that rates could be cut in the first quarter of 2021. The zloty weakened by as much as 1.77% on Tuesday afternoon, raising speculation that the central bank was intervening in the FX market to weaken the currency for the second time in a month. Late on Tuesday comments from central bank governor Adam Glapinski appeared on financial news website Obserwator Finansowy and the the National Bank of Poland (NBP) Twitter account, saying rate cuts were possible in the first quarter of 2021. Earlier in December Glapinski had said that rates would remain at the current level for a long time. Analysts polled by Reuters earlier in December expected rates to be on hold until the fourth quarter of 2022. At 1011 GMT the zloty was 0.19% firmer against the euro at 4.528. "To be honest we are preparing for a battle – NBP against the market," said Mateusz Sutowicz, a financial market analyst at Bank Millennium in Warsaw. "The timing is very important; the end of the year is a time that is very important for NBP revenue which in 95% is going to the central budget. The NBP is trying to weaken the zloty to give the central budget a big amount of money." An NBP spokesman declined to comment on the zloty. The Czech crown was also 0.21% firmer against the euro at 26.19, while the Hungarian forint was little changed at 364.75. "There is thin year-end trade, the currency is still in the range where the forint was trading yesterday. The currency could easily end the year in this range between 364 and 365," a Budapest-based FX trader said. Stocks were mixed, with the main indexes in Prague and Warsaw down 0.34% and 0.63% respectively, while in Budapest the main index rose 0.63%. CEE SNAPSHO AT MARKETS T 1111 CET CURRENC IES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech % EURHUF= Hungary 0 EURPLN= Polish % EURRON= Romanian % EURHRK= Croatian % EURRSD= Serbian 0 % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 .PX Prague 1027.08 1030.620 -0.34% -7.94% 0 .BUX Budapest 41997.2 41733.11 +0.63 -8.87% 7 % .WIG20 Warsaw 2003.24 2016.01 -0.63% -6.83% .BETI Buchares 9746.41 9738.51 +0.08 -2.31% t % .SBITOP Ljubljan <.SBITOP 901.17 901.34 -0.02% -2.67% a > .CRBEX Zagreb 1743.64 1743.07 +0.03 -13.57% % .BELEX1 Belgrade <.BELEX1 727.92 731.27 -0.46% -9.20% 5 5> .SOFIX Sofia 447.25 446.79 +0.10 -21.28% % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year ps CZ5YT=R 5-year ps CZ10YT= ps Poland PL2YT=R 2-year ps PL5YT=R 5-year ps PL10YT= ps FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.38 0.48 0.60 0.35 Rep Hungary 0.68 0.69 0.71 0.75 Poland 0.19 0.19 0.22 0.21 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Alan Charlish in Warsaw and Anita Komuves in Budapest; Editing by Shailesh Kuber)

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