By Anita Komuves
BUDAPEST, Oct 7 (Reuters) – Central European currencies held stable on Wednesday, having briefly weakened after U.S. President Donald Trump’s announcement on Tuesday that negotiations about a new fiscal stimulus would stop until after the Nov. 3 election.
The announcement led to larger moves on the FX market Tuesday evening, Equilor wrote in a note.
Some emerging currencies, including the Hungarian forint, weakened as the announcement led to a risk-off mood and a strengthening of the dollar, they added.
The sour mood was replaced on Wednesday by optimism a stimulus package would be introduced after the election.
The forint EURHUF= was up 0.1% on Wednesday, trading at 359.450 versus the common currency.
Investors were also eyeing the Polish central bank’s rate decision later today. All 16 analysts polled by Reuters expect the key interest rate to remain on hold at a record low of 0.1%.
Poland’s central bank has cut the cost of borrowing three times by a cumulative 140 basis points since March.
“Governor Adam Glapinski views the job of NBP as mainly to ‘support’ the economy at this time,” Commerzbank wrote in a note. “Such a stance weighs down on the zloty exchange rate.”
The currency EURPLN= edged down 0.04% at 4.4828 per euro.
Elsewhere, the Czech crown EURCZK= was up 0.07% at 26.980 per euro, testing the psychological level of 27 after firming towards it in recent days.
The pandemic is still a concern in the Czech Republic where cases are now rising at the fastest rate in Europe when adjusted for population.
Stocks were mixed, with Bucharest’s equities .BETI firming 0.21% while Warsaw’s blue chip index .WIG20 weakened 0.81%. Budapest’s stock market .BUX was down 0.6%.
Prague .PX slid 0.08% while shares in Central European Media Enterprises CETV.PRCETV.O rose over 4% after the European Commission approved Czech investment group PPF’s bid to buy the broadcaster.
CEE MARKETS
SNAPSHOT
AT 1101 CET
CURRENCIES
Latest
Previous
Daily
Change
bid
close
change
in 2020
EURCZK=
Czech crown
EURCZK=
26.9800
27.0000
+0.07%
-5.74%
EURHUF=
Hungary forint
EURHUF=
359.4500
359.8100
+0.10%
-7.87%
EURPLN=
Polish zloty
EURPLN=
4.4828
4.4810
-0.04%
-5.05%
EURRON=
Romanian leu
EURRON=
4.8745
4.8756
+0.02%
-1.77%
EURHRK=
Croatian kuna
EURHRK=
7.5680
7.5683
+0.00%
-1.62%
EURRSD=
Serbian dinar
EURRSD=
117.5300
117.5400
+0.01%
+0.03%
Note: daily change
calculated from
1800 CET
Latest
Previous
Daily
Change
close
change
in 2020
.PX
Prague
.PX
873.64
874.3300
-0.08%
-21.69%
.BUX
Budapest
.BUX
33629.93
33651.55
-0.06%
-27.02%
.WIG20
Warsaw
.WIG20
1721.39
1735.45
-0.81%
-19.94%
.BETI
Bucharest
.BETI
8903.98
8885.36
+0.21%
-10.76%
.SBITOP
Ljubljana
.SBITOP
840.58
843.77
-0.38%
-9.21%
.CRBEX
Zagreb
.CRBEX
1616.61
1618.24
-0.10%
-19.87%
.BELEX15
Belgrade
.BELEX15
695.94
695.52
+0.06%
-13.19%
.SOFIX
Sofia
.SOFIX
421.52
422.19
-0.16%
-25.81%
Yield
Yield
Spread
Daily
(bid)
change
vs Bund
change in
Czech Republic
spread
CZ2YT=RR
2-year
CZ2YT=RR
0.1110
0.0040
+081bps
+1bps
CZ5YT=RR
5-year
CZ5YT=RR
0.5350
-0.0400
+124bps
-4bps
CZ10YT=RR
10-year
CZ10YT=RR
0.9230
-0.0250
+143bps
-2bps
Poland
PL2YT=RR
2-year
PL2YT=RR
0.0420
-0.0090
+074bps
-1bps
PL5YT=RR
5-year
PL5YT=RR
0.6010
0.0050
+131bps
+1bps
PL10YT=RR
10-year
PL10YT=RR
1.3650
0.0080
+187bps
+1bps
FORWARD
3×6
6×9
9×12
3M interbank
Czech Rep
CZKFRAPRIBOR=
0.31
0.31
0.36
0.35
Hungary
HUFFRABUBOR=
1.01
1.07
1.12
0.77
Poland
PLNFRAWIBOR=
0.21
0.21
0.22
0.22
Note: FRA quotes
are for ask prices
**************************************************************
(Additional reporting by Jason Hovet in Prague and Alan Charlish in Warsaw; Editing by Krishna Chandra Eluri)
(([email protected])(+36 70 795 8815))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.