off-the-wire

UPDATE 1-CEE MARKETS-FX slips as dollar firms, CEZ falls

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds graphic, no change to text) By Alan Charlish WARSAW, Feb 17 (Reuters) - Central European currencies were on the back foot on Friday, as a stronger dollar and an opinion from an adviser to the European Union's top court seen as negative for Polish banks soured sentiment. The dollar rose to a six-week high as strong U.S. economic data and comments from Federal Reserve officials led traders to bet more interest rate rises are coming. Economists at Hungarian Bankholding said the rally in the dollar contributed to a weakening of the Hungarian forint through increased risk aversion and higher interest rate expectations in the United States. At 1044 GMT, the forint was 0.60% weaker against the euro at 385.90. The Polish zloty was broadly stable against the euro at 4.778. The zloty and Polish stocks fell on Thursday after an opinion from an adviser to the European Court of Justice (ECJ) backed Polish borrowers with Swiss franc-denominated mortgages in a long-running case that the country's regulator has warned could cost Polish banks 100 billion zlotys ($22 billion). "In general we expect the zloty to continue to underperform," said Piotr Poplawski, senior economist at ING in Warsaw. "Yesterday's ruling from the ECJ was negative for the Polish banking sector and this in itself is enough to bet against Polish assets." In the Czech Republic, the crown was 0.14% weaker at 23.72.


Meanwhile, shares in Czech utility CEZ fell around 3%, a second day of losses after they touched a six-month high on Wednesday, with investors taking profits and a Citi recommendation to sell also hitting the stock. CEZ had jumped in the past week amid speculation of a potential buyout from the state, which holds 70% of shares. Prime Minister Petr Fiala reiterated on Thursday the government would decide on a plan to take larger control over electricity production in the country some time this year. The government has been mulling ways to restructure CEZ to secure full control over some of its power production and create easier conditions for investments into nuclear power plants that are difficult for privately held companies. CEE SNAPSHO AT


MARKETS T 1144


CET


CURRENC


IES


Latest Previou Daily Change s


bid close change in 2023 EURCZK Czech <EURCZK 23.7200 23.6860 -0.14% +1.85% = crown =>
EURHUF Hungary <EURHUF 385.900 383.600 -0.60% +3.51% = forint => 0 0
EURPLN Polish <EURPLN 4.7780 4.7770 -0.02% -1.85% = zloty =>
EURRON Romanian <EURRON 4.9055 4.8981 -0.15% +0.75% = leu =>
EURHRK Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05% = kuna =>
EURRSD Serbian <EURRSD 117.220 117.305 +0.07% +0.07% = dinar => 0 0


Note: calculated from 1800


daily CET


change



Latest Previou Daily Change s


close change in 2023 .PX Prague 1394.49 1400.55 -0.43% +16.04 00 % .BUX Budapest 45692.4 46039.3 -0.75% +4.34% 3 4
.WIG20 Warsaw <.WIG20 1857.91 1865.51 -0.41% +3.68% >
.BETI Buchares 12355.5 12364.2 -0.07% +5.93% t 5 1
.SBITO Ljubljan <.SBITO 1190.47 1192.58 -0.18% +13.51 P a P> % .CRBEX Zagreb <.CRBEX 2148.94 2151.50 -0.12% +717.8 > 0% .BELEX Belgrade <.BELEX 871.24 869.08 +0.25% +5.65% 15 15>
.SOFIX Sofia <.SOFIX 610.98 605.89 +0.84% +1.58% >



Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
CZ2YT= 2-year <CZ2YT= 5.9020 -0.0330 +297bp -8bps RR RR> s
CZ5YT= 5-year <CZ5YT= 5.1280 0.0100 +254bp -5bps RR RR> s
CZ10YT <CZ10YT 4.8750 0.1370 +235bp +9bps =RR 10-year =RR> s


Poland
PL2YT= 2-year <PL2YT= 6.5440 0.1780 +361bp +13bps RR RR> s
PL5YT= 5-year <PL5YT= 6.5510 0.2020 +396bp +15bps RR RR> s
PL10YT <PL10YT 6.5000 0.1460 +397bp +10bps =RR 10-year =RR> s


FORWARD


3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.21 7.05 6.60 7.20 Rep ><PRIBO


R=>


Hungary <HUFFRA 15.84 14.38 12.95 16.18 ><BUBOR


=>


Poland <PLNFRA 7.01 6.99 6.74 6.94 ><WIBOR


=>


Note: are for ask


FRA prices


quotes



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($1 = 4.4837 zlotys) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Hungarian forint's hot streak ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Alan Charlish in Warsaw, Jason Hovet in Prague, Gergely Szakacs in Budapest Editing by Mark Potter and Raissa Kasolowsky)

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