Zloty, forint firms on euro jump, Czech crown lags behind
By Boldizsar Gyori
BUDAPEST, July 1 (Reuters) -Central European currencies firmed or held steady on Monday as the euro firmed and markets' risk-appetite grew following the first round of French parliamentary elections that somewhat eased investor uncertainty.
Hungary's forint EURHUF= firmed 0.4% to a 3-week high to trade at 393.1 to the euro, with the Polish zloty EURPLN= also firming 0.34% to trade at 4.295 at 0831 GMT.
"July begins with a strong upward trend in the Eurodollar market as a reaction to the results of the first round of parliamentary elections in France," Bank Millennium said in a note.
"They indicate the victory of the far-right National Union, but with slightly less support than the polls indicated."
The euro jumped on Monday after a convincing and historic win by the French far right in the first round of parliamentary elections fell slightly short of some expectations, leaving the final result dependent on party deals before a second round next weekend.
The crown underperformed its central European peers by holding steady since markets opened, trading at 25.01, returning from a 2-month low touched last week when the Czech National Bank (CNB) cut its key two-week repo rate CZCBIR=ECI by 50 basis points on Thursday, on the sharper end of expectations.
"The Czech crown is under pressure after the surprise 50bps interest rate cut in June and is moving above the key psychological level of EUR 25.00/CZK," CSOB Bank said in a note.
"The crown may thus be at the mercy of political tensions in Europe in the coming weeks and months."
Hungarian, Czech and Polish manufacturing activity all showed contraction for June, S&P Global's manufacturing Purchasing Managers' Index (PMI)showed, with the results coming in below the 50-point mark that separates growth from contraction.
CEE MARKETS | SNAPSHOT | AT 1031 CET | ||||
CURRENCIES | ||||||
Latest | Previous | Daily | Change | |||
trade | close | change | in 2024 | |||
EURCZK= | Czech crown | EURCZK= | 25.0110 | 25.0370 | +0.10% | -1.24% |
EURHUF= | Hungary forint | EURHUF= | 393.1000 | 394.7500 | +0.42% | -2.52% |
EURPLN= | Polish zloty | EURPLN= | 4.2950 | 4.3095 | +0.34% | +1.15% |
EURRON= | Romanian leu | EURRON= | 4.9770 | 4.9775 | +0.01% | -0.05% |
EURRSD= | Serbian dinar | EURRSD= | 116.9300 | 117.0200 | +0.08% | +0.27% |
Note: daily change | calculated from | 1800 CET | ||||
Latest | Previous | Daily | Change | |||
close | change | in 2024 | ||||
.PX | Prague | .PX | 1548.98 | 1545.9100 | +0.20% | +9.54% |
.BUX | Budapest | .BUX | 71836.75 | 72094.79 | -0.36% | +18.50% |
.WIG20 | Warsaw | .WIG20 | 2572.87 | 2561.27 | +0.45% | +9.81% |
.BETI | Bucharest | .BETI | 18219.86 | 18244.75 | -0.14% | +18.53% |
Spread | Daily | |||||
vs Bund | change in | |||||
Czech Republic | spread | |||||
CZ2YT=RR | 2-year | CZ2YT=RR | 4.0120 | 0.0270 | +110bps | -6bps |
CZ5YT=RR | 5-year | CZ5YT=RR | 4.0560 | 0.0130 | +149bps | -8bps |
CZ10YT=RR | 10-year | CZ10YT=RR | 4.2000 | 0.0360 | +163bps | -5bps |
Poland | ||||||
PL2YT=RR | 2-year | PL2YT=RR | 5.1640 | 0.0100 | +225bps | -8bps |
PL5YT=RR | 5-year | PL5YT=RR | 5.6130 | 0.0160 | +305bps | -8bps |
PL10YT=RR | 10-year | PL10YT=RR | 5.7910 | 0.0240 | +322bps | -6bps |
FORWARD RATE AGREEMENTS | ||||||
3x6 | 6x9 | 9x12 | 3M interbank | |||
Czech Rep | CZKFRAPRIBOR= | 4.36 | 4.12 | 3.93 | 4.71 | |
Hungary | HUFFRABUBOR= | 7.11 | 6.84 | 6.54 | 6.89 | |
Poland | PLNFRAWIBOR= | 5.80 | 5.67 | 5.37 | 5.85 | |
Note: FRA quotes | are for ask prices | |||||
************************************************************** | ||||||
Reporting by Boldizsar Gyori in Budapest; additional reporting by Jan Lopatka in Prague; Editing by Mrigank Dhaniwala
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