CEE MARKETS-Zloty brushes off virus worries to lead FX gains

  • 4/1/2021
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April 1 (Reuters) - Central European currencies rose on Thursday, with the Polish zloty leading gains, as investors squared off positions ahead of the Easter weekend, brushing off concerns over a new record number of coronavirus cases in the country. The zloty had touched a 12-year low at the beginning of the week amid concerns about surging numbers of COVID-19 cases in the country, but has since rebounded and outperformed regional peers. "This is ahead of holidays -- the zloty was underperforming earlier, now it"s outperforming... it seems like the main reason is probably the market was long, squaring positions ahead of the Easter holidays," a Warsaw-based currency trader said. Grzegorz Ogonek, an economist at Santander Bank Polska, said the zloty had also been supported by a lower-than-expected 2020 general government deficit, which came in at 6.9% of GDP according to statistics office data. At 0929 GMT, the zloty was 0.17% firmer against the euro at 4.624. The Czech crown was 0.12% firmer at 26.08 and the Hungarian forint was little changed at 362.10. The forint has strengthened since last week, after the central bank said it was ready to prevent a sustained rise in inflation, traders said. "The euro-forint rate is near a very important level. It arrived at the 50-day moving average, and if it breaks that, it can continue moving first until the 360-level," brokerage Equilor wrote. Polish 10-year yields were little changed at 1.572%. On Wednesday, the Polish central bank, which had earlier announced that it would increase the frequency and flexibility of its bond-buying operations, said it could hold more operations in April. Czech 10-year yields fell almost 7 basis points to 1.88%. CEE SNAPSHO AT MARKETS T 1129 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech % EURHUF= Hungary 0 EURPLN= Polish % EURRON= Romanian % EURHRK= Croatian EURRSD= Serbian 0 % Note: calculat 1800 daily ed from CET change Latest Previous Daily Change close change in 2021 .PX Prague 1093.45 1090.500 +0.27 +6.46% 0 % .BUX Budapest 44241.4 44326.18 -0.19% +5.07% 4 .WIG20 Warsaw 1947.96 1938.84 +0.47 -1.82% % .BETI Buchares 11230.8 11189.60 +0.37 +14.54 t 6 % % .SBITOP Ljubljan <.SBITOP 994.58 993.80 +0.08 +10.40 a > % % .CRBEX Zagreb 1876.39 1872.22 +0.22 +7.88% % .BELEX15 Belgrade <.BELEX1 749.81 754.40 -0.61% +0.16% 5> .SOFIX Sofia 502.37 502.28 +0.02 +12.25 % % Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=RR 2-year ps CZ5YT=RR 5-year ps CZ10YT=R ps Poland PL2YT=RR 2-year ps PL5YT=RR 5-year ps PL10YT=R ps FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.45 0.65 0.97 0.36 Rep Hungary 1.03 1.24 1.43 0.78 Poland 0.27 0.32 0.42 0.21 Note: are for FRA ask quotes prices

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