CEE MARKETS-Crown hits practically 15-year excessive, zloty holds close to 2023 peak – thqaftqlm

CEE MARKETS-Crown hits practically 15-year excessive, zloty holds close to 2023 peak

Updates all through with crown excessive

BUDAPEST, April 13 (Reuters)The Czech crown rose to its highest towards the euro since July 2008 as inflation information chimed with the central financial institution’s hawkish tone, whereas a retreating U.S. greenback helped the Polish zloty attain a 2023 peak.

Central European policymakers have been pushing again towards market expectations of rate of interest cuts coming rapidly this yr, as they steadiness still-high inflation with economies weakened by faltering shopper demand.

Czech headline inflation remained excessive in March even because it slowed to a charge of 15.0%, a second-consecutive fall to take it to its lowest since April final yr, statistics workplace information confirmed on Thursday.

The crown EURCZK= was up 1 / 4 of a p.c in afternoon commerce, buying and selling at 23.284 to the euro and breaking the 23.300 degree for the primary time in practically 15 years.

“It’s a response to inflation figures and together with hawkish feedback from new (central financial institution) board members,” Komercni Banka economist Jaromir Gec mentioned. “Core inflation stays fairly sticky.”

The Czech central financial institution has maintained the talk over conserving secure coverage and a key charge of seven.00%, or elevating rates of interest if wages speed up.

Two have been quoted as saying in numerous media interviews revealed earlier than the inflation information that charge cuts couldn’t occur till inflation was decrease.

Market rates of interest ticked up, with a 6×9 ahead charge settlement (FRA), indicating anticipated charge adjustments in half a yr, climbing greater than 10 foundation factors as traders lowered bets on the possibility of a charge minimize in that point.

One of many new central bankers, Jan Kubicek, informed Hospodarske Noviny in an interview that he didn’t see a fast rate of interest lower within the autumn as had been steered by the yield curve.

WEAKER DOLLAR HELPS

In Poland, the zloty EURPLN= rose 0.35% to 4.6375 to the euro to the touch its highest since late December because it discovered help from a weaker greenback.

“The currencies of the area are nonetheless supported by the upward development of the euro/greenback, though in our opinion it might take a breather after it reached this yr’s most, and the theme of the outlook for the financial coverage of the Fed and the ECB appear to have been briefly worn out by the markets,” Financial institution Millennium mentioned.

The forint EURHUF=, bolstered by the European Union’s highest base charge at 13%, was down 0.1% at 374.4 versus the euro, with March inflation information launched on Wednesday underpinning views that rate of interest cuts weren’t on the agenda.

The Nationwide Financial institution of Hungary “will seemingly not have the ability to let up on its hawkish rhetoric anytime quickly, which in flip, might be HUF-supportive,” Commerzbank mentioned.

CEE MARKETS

SNAPSHOT

AT 1348 CET

CURRENCIES

Newest

Earlier

Each day

Change

bid

shut

change

in 2023

EURCZK=

Czech crown

EURCZK=

23.2840

23.3440

+0.26%

+3.75%

EURHUF=

Hungary forint

EURHUF=

374.4000

374.0000

-0.11%

+6.69%

EURPLN=

Polish zloty

EURPLN=

4.6375

4.6535

+0.35%

+1.12%

EURRON=

Romanian leu

EURRON=

4.9438

4.9380

-0.12%

-0.03%

EURRSD=

Serbian dinar

EURRSD=

117.2300

117.3000

+0.06%

+0.06%

Observe: each day change

calculated from

1800 CET

Newest

Earlier

Each day

Change

shut

change

in 2023

.PX

Prague

.PX

1406.55

1402.3200

+0.30%

+17.04%

.BUX

Budapest

.BUX

42860.27

43375.43

-1.19%

-2.13%

.WIG20

Warsaw

.WIG20

1830.43

1816.28

+0.78%

+2.14%

.BETI

Bucharest

.BETI

12468.68

12434.43

+0.28%

+6.90%

.SBITOP

Ljubljana

.SBITOP

1233.88

1230.53

+0.27%

+17.65%

.BELEX15

Belgrade

.BELEX15

880.52

870.24

+1.18%

+6.78%

.SOFIX

Sofia

.SOFIX

614.83

611.57

+0.53%

+2.22%

Yield

Yield

Unfold

Each day

(bid)

change

vs Bund

change in

Czech Republic

unfold

CZ2YT=RR

2-year

CZ2YT=RR

5.8100

0.0490

+302bps

+4bps

CZ5YT=RR

5-year

CZ5YT=RR

5.2180

0.1530

+282bps

+13bps

CZ10YT=RR

10-year

CZ10YT=RR

4.7440

0.1030

+236bps

+8bps

Poland

PL2YT=RR

2-year

PL2YT=RR

6.1690

-0.0900

+338bps

-10bps

PL5YT=RR

5-year

PL5YT=RR

6.2360

0.0620

+383bps

+4bps

PL10YT=RR

10-year

PL10YT=RR

6.2520

0.0280

+387bps

+0bps

FORWARD

3×6

6×9

9×12

3M interbank

Czech Rep

CZKFRAPRIBOR=

7.21

6.97

6.31

7.18

Hungary

HUFFRABUBOR=

15.45

13.77

12.42

16.31

Poland

PLNFRAWIBOR=

6.90

6.81

6.48

6.90

Observe: FRA quotes

are for ask costs

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

(Reporting by Gergely Szakacs, Boldizsar Gyori, Alan Charlish, and Jason Hovet; Modifying by Christina Fincher, Kirsten Donovan)

((gergely.szakacs@thomsonreuters.com ; https://twitter.com/szakacsg ; +36 1 882 3606 ; https://www.reuters.com/authors/gergely-szakacs/))

The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.

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