CEE MARKETS-FX muted into pre-holiday trade, forint touches 400 level

By Anita Komuves

BUDAPEST, Dec 23 (Reuters)Central European currencies were little moved on Friday in thin pre-holiday trade, with the Hungarian forint adding to its gains from the past two weeks and touching the psychologically important level of 400.

The forint EURHUF= was 0.14% up on the day and trading at 400.30 per euro, supported by a deal between Hungary and the European Union over funds struck on Dec 12. The currency, central Europe’s worst performer so far this year, gained near 4% since the agreement .

However, the pandemic recovery funds and cohesion funds earmarked for Hungary are subject to conditions according to the deal.

On Thursday the European Commission said that it would hold back all 22 billion euros of EU cohesion funds until the government meets conditions related to judiciary independence, academic freedoms, LGBTQI rights and the asylum system.

The forint was also supported by the central bank’s pledge on Tuesday to maintain tight monetary conditions for a prolonged period and to continue to meet foreign currency liquidity needs to reach market balance related to the energy account, analysts have said.

The Czech crown EURCZK= added 0.12% to trade at 24.189 versus the common currency, regaining some of its losses from the previous session.

“The crown came under slight pressure yesterday due to rising global risk aversion and returned above 24.20,” CSOB Bank wrote.

“Today’s trading should be quiet, not only due to the empty macro calendar, but also due to lower pre-Christmas liquidity in the crown market.”

The Polish zloty was flat, trading at 4.6385 per euro.

“The EUR/PLN exchange rate should concentrate around 4.64. The mood of stabilization will be supported by the pre-Christmas period” Bank Millennium said in a note.

CEE MARKET

SNAPSHOT

AT0953CET

CURRENTIES

Latest

Previous

Daily

Change

bid

close

change

in 2022

EURCZK=

Czech crown

EURCZK=

24.1890

24.2180

+0.12%

+2.82%

EURHUF=

Hungary forint

EURHUF=

400.3000

400.8500

+0.14%

-7.72%

EURPLN=

Polish zloty

EURPLN=

4.6385

4.6395

+0.02%

-1.02%

EURRON=

Romanian leu

EURRON=

4.8990

4.8960

-0.06%

+1.00%

EURHRK=

Croatian kuna

EURHRK=

7.5380

7.5365

-0.02%

-0.27%

EURRSD=

Serbian dinar

EURRSD=

117.2200

117.2650

+0.04%

+0.31%

Note: daily change

calculated from

1800 CEST

Latest

Previous

Daily

Change

close

change

in 2022

.PX

Prague

.PX

1200.00

1190.9400

+0.00%

.BUX

Budapest

.BUX

45147.16

45538.06

-0.86%

-10.99%

.TIG20

Warsaw

.TIG20

1776.14

1780.07

-0.22%

-21.65%

.BETI

Bucharest

.BETI

12202.60

12162.53

+0.33%

-6.57%

.SBITOP

Ljubljana

.SBITOP

1065.01

1061.57

+0.32%

-15.17%

.CRBEX

Zagreb

.CRBEX

1961.80

1961.60

+0.01%

-5.65%

.BELEX15

Belgrade

.BELEX15

809.18

811.25

-0.26%

-1.41%

.SOFIX

Sofia

.SOFIX

601.69

601.42

+0.04%

-5.35%

yield

yield

spread

Daily

(bid)

change

vs covenant

change in

Czech Republic

spread

CZ2YT=RR

2 year

CZ2YT=RR

5.6180

0.0070

+303bps

-2bps

CZ5YT=RR

5 year

CZ5YT=RR

5.1420

-0.0090

+274bps

-3bps

CZ10YT=RR

10 year

CZ10YT=RR

4.9990

0.0540

+262bps

+4bps

Poland

PL2YT=RR

2 year

PL2YT=RR

6.7380

-0.0010

+415bps

-3bps

PL5YT=RR

5 year

PL5YT=RR

6.7800

-0.0200

+437bps

-4bps

PL10YT=RR

10 year

PL10YT=RR

6.7160

-0.0130

+434bps

-2bps

FORWARD

3×6

6×9

9×12

3M interbank

Czech Republic

CZKFRAPRIBOR=

7.18

6.88

6.55

7.26

Hungary

HUFFRABUBOR=

15.60

14.34

13.22

16.21

Poland

PLNFRAWIBOR=

7.18

7.24

7.04

7.05

Note: FRA quotes

are for ask prices

************************************************** ************

(Additional reporting by Robert Muller in Prague and Pawel Florkiewicz in Warsaw; Editing by Shailesh Kuber)

(([email protected])(+36 70 795 8815))

The views and opinions expressed in are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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