BUCHAREST, June 16 (Reuters) - The Polish zloty edged higher
against the euro on Tuesday ahead of a central bank meeting
expected to leave interest rates untouched, while central
European stocks firmed after the U.S. Federal Reserve launched a
corporate bond buying programme.
By 0850 GMT, the zloty traded 0.2% higher versus
the euro at 4.4260.
Poland unexpectedly cut interest rates to almost zero in May
to support an economy affected by the COVID-19 pandemic.
Analysts were expecting policymakers to keep the benchmark
interest rate at 0.1% on Tuesday.
"We cannot see any reason why the central bank would need to
urgently do more, unless of course, there were to be a second
shock down the road," Commerzbank said in a daily note.
"Now Poland has a seriously negative real interest rate and
we expect the zloty to underperform peers over the coming year."
Elsewhere in the region, the Czech crown was up
0.6%. On Monday, central bank governor Jiri Rusnok said cutting
interest rates further from already low levels could undermine
the income and stability of the financial sector.
Central banks across the region have cut their benchmark
rates and enforced further measures to shore up economic
activity damaged by restrictions and closures aimed at curbing
the coronavirus outbreak.
The Hungarian forint was up 0.6% versus the euro
while the Romanian leu was flat.
Stocks recovered earlier losses driven by a resurgence in
coronavirus cases and concerns over a sluggish economic recovery
from the pandemic, with Warsaw's bluechip up 2.6% on
the day. Prague's rose 2.3%, Budapest's gained 1.8%
and Bucharest's advanced 1.3%.
CEE SNAPSHO AT
MARKETS T 1050
CET
CURRENC
IES
Latest Previou Daily Change
s
bid close change in 2020
Czech <EURCZK 26.5770 26.7450 +0.63% -4.31%
crown =>
Hungary <EURHUF 345.800 347.770 +0.57% -4.24%
forint => 0 0
Polish <EURPLN 4.4260 4.4343 +0.19% -3.83%
zloty =>
Romanian <EURRON 4.8350 4.8330 -0.04% -0.97%
leu =>
Croatian <EURHRK 7.5530 7.5585 +0.07% -1.42%
kuna =>
Serbian <EURRSD 117.530 117.590 +0.05% +0.03%
dinar => 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change
s
close change in 2020
Prague 944.53 923.200 +2.31% -15.34%
0
Budapest 37991.6 37340.8 +1.74% -17.56%
1 4
Warsaw <.WIG20 1786.59 1741.47 +2.59% -16.91%
>
Buchares 8641.57 8532.77 +1.28% -13.39%
t
Ljubljan <.SBITO 861.19 859.47 +0.20% -6.98%
a P>
Zagreb <.CRBEX 1648.33 1644.27 +0.25% -18.30%
>
Belgrade <.BELEX 676.66 677.39 -0.11% -15.60%
15>
Sofia <.SOFIX 460.07 458.81 +0.27% -19.02%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
2-year <CZ2YT= 0.1490 0.0000 +079bp -1bps
RR> s
5-year <CZ5YT= 0.4560 0.0350 +109bp +2bps
RR> s
<CZ10YT 0.9360 0.0520 +136bp +4bps
10-year =RR> s
Poland
2-year <PL2YT= 0.2340 -0.0030 +088bp -1bps
RR> s
5-year <PL5YT= 0.7910 -0.0560 +143bp -7bps
RR> s
<PL10YT 1.3560 0.0050 +178bp -1bps
10-year =RR> s
FORWARD
3x6 6x9 9x12 3M
interba
nk
Czech <CZKFRA 0.30 0.34 0.39 0.34
Rep ><PRIBO
R=>
Hungary <HUFFRA 0.78 0.70 0.66 0.90
><BUBOR
=>
Poland <PLNFRA 0.24 0.24 0.26 0.27
><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Luiza Ilie in Bucharest, Anita Komuves in
Budapest and Alan Charlish in Warsaw; Editing by Krishna Chandra
Eluri)
Source: Read Full Article
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