Currencies slip as investors eye more rate hikes in Poland, Hungary

  • 12/7/2021
  • 00:00
  • 3
  • 0
  • 0
news-picture

Central European currencies edged lower on Tuesday in thin trade as investors were eyeing key inflation data and central bank rate decisions due later in the week, while stocks firmed as global sentiment was upbeat. The Hungarian forint was 0.04% lower at 365.49 per euro in low liquidity, as investors were eyeing November CPI data due on Wednesday and the central bank"s one-week deposit tender on Thursday, two FX traders in Budapest said. Hungary"s annual headline inflation is expected to have peaked above 7% in November and the central bank will continue hiking its interest rates this month to curb inflation, Deputy Governor Barnabas Virag said on Tuesday. read more According to a Reuters poll, November headline inflation is expected at an annual 7.3%. The National Bank of Hungary (NBH) will hold its first FX swap tender this month later today. The bank announced on Friday that it will hold foreign currency swap tenders providing the euro liquidity and a discount bill tender in December to improve monetary policy transmission. "The FX swap tender can help stabilize the forint"s rate when investors adjust their positions at the end of the quarter, but it usually does not have an immediate effect on the forint"s rate," one FX trader said. The Polish zloty slid 0.07% to 4.5980 per euro, halting its recent gains that were supported by increased rate hike expectations as November inflation jumped. The National Bank of Poland (NBP) holds its next rate-setting meeting on Wednesday where a Reuters poll of analysts expects a 50 basis-point hike to 1.75%. Elsewhere, the Czech crown edged down 0.08% to trade at 25.4500 versus the common currency. November inflation data in the Czech Republic will be published on Friday. Industrial output data showed on Tuesday that a global chip shortage in the car sector dragged heavily on Czech and Hungarian industrial output in October, setting up their economies for a weak start to the fourth quarter. Global stocks rose as concerns about the Omicron variant of the coronavirus eased. read more Warsaw"s (.WIG20) equities led gains, adding 1.77%, while Budapest (.BUX) was 1.15% higher. Prague (.PX) was 0.85% up and Bucharest (.BETI) added 0.95%. CEE MARKETS SNAPSHOT AT 1049 CET CURRENCIES Latest Previous Daily Change bid close hm in 2021 EURCZK= Czech crown 25.4500 25.4290 -0.08% +3.06% EURHUF= Hungary forint 365.4900 365.3600 -0.04% -0.76% EURPLN= Polish zloty 4.5980 4.5947 -0.07% -0.84% EURRON= Romanian leu 4.9480 4.9475 -0.01% -1.68% EURHRK= Croatian kuna 7.5230 7.5255 +0.03% +0.33% EURRSD= Serbian dinar 117.4800 117.5800 +0.09% +0.08% Note: daily change calculated from 1800 CET Latest Previous Daily Change close change in 2021 .PX Prague (.PX) 1380.95 1369.2500 +0.85% +34.45% .BUX Budapest (.BUX) 51305.41 50723.42 +1.15% +21.84% .WIG20 Warsaw (.WIG20) 2229.37 2190.67 +1.77% +12.37% .BETI Bucharest (.BETI) 12566.24 12448.01 +0.95% +28.15% .SBITOP Ljubljana (.SBITOP) 1220.99 1215.70 +0.44% +35.54% .CRBEX Zagreb (.CRBEX) 1996.95 1991.88 +0.25% +14.81% .BELEX15 Belgrade (.BELEX15) 831.89 833.81 -0.23% +11.12% .SOFIX Sofia (.SOFIX) 624.62 624.64 -0.00% +39.57% Yield Yield Spread Daily (bid) change vs Bund change in Czech Republic spread CZ2YT=RR 2-year 2.9090 0.0090 +362bps -1bps CZ5YT=RR 5-year 2.6640 0.0310 +327bps +1bps CZ10YT=RR 10-year 2.5500 -0.0110 +292bps -3bps Poland PL2YT=RR 2-year 2.9050 -0.0300 +362bps -5bps PL5YT=RR 5-year 3.3080 -0.1300 +391bps -15bps PL10YT=RR 10-year 3.2920 0.0700 +366bps +5bps FORWARD 3x6 6x9 9x12 3M interbank Czech Rep 3.95 3.94 3.82 3.20 Hungary 4.47 4.60 4.60 3.49 Poland 3.10 3.32 3.27 2.24 Note: FRA quotes are for ask prices ************************************************************** Reporting by Anita Komuves in Budapest; Editing by Amy Caren Daniel Our Standards: The Thomson Reuters Trust Principles.

مشاركة :