CEE MARKETS-Forint leads FX retreat as global banking worries remain

By Karol Badohal Warsaw, March 24 (Reuters) - Hungary's forint lost more than 1% on Friday, falling for the first time this week as central European currencies shed some recent gains amid lingering banking stability concerns weighing on markets. Investor sentiment remains frail after turmoil in the U.S. and European banking sectors in the past two weeks has revived memories of the 2008 global financial crisis. Currencies have rebounded from heavy losses at the start of the week in the wake of Credit Suisse's takeover by rival UBS, but gave up some gains on Friday. "The forint is weakening this morning as the dollar is firming and also this is a correction as the forint had gained a lot in the past days," a Budapest FX dealer said. The Hungarian forint had dropped 1.67% versus the euro by 1041 GMT, while the Czech crown and Polish zloty slid 0.40% and 0.10% respectively. Bank Millennium analyst Mateusz Sutowicz said the market was becoming exhausted from turbulence in recent days. "The zloty is stable today and positively stands out, especially against the slightly weakening currencies of other parts of the region," he added. Markets will turn to central bank meetings in the region next week, with Hungary and Czech central banks expected to stay on hold while keeping a hawkish tone. A Budapest dealer said the unstable global environment would keep rate setters on hold. The Czech bank will also likely signal no rush to consider rate cuts, analysts say. Shares in Warsaw, Budapest and Prague dropped about 2% following weaker trading across Europe amid continued banking worries. On the economic front, the first leading indicator for March from the region showed Czech business confidence hit a seven-month high but consumer sentiment remained depressed due to high inflation, according to statistics office data.
** Click here for an interactive graphic:

CEE SNAPSHO AT

MARKETS T 1141

CET

CURRENC

IES

Latest Previou Daily Change s

bid close change in 2023 Czech <EURCZK 23.6850 23.5900 -0.40% +2.00% crown =>
Hungary <EURHUF 389.000 382.500 -1.67% +2.68% forint => 0 0
Polish <EURPLN 4.6870 4.6825 -0.10% +0.05% zloty =>
Romanian <EURRON 4.9255 4.9240 -0.03% +0.35% leu =>
Croatian <EURHRK 7.5330 7.5365 +0.05% +0.05% kuna =>
Serbian <EURRSD 117.250 117.350 +0.09% +0.04% dinar => 0 0
Note: calculated from 1800
daily CET
change

Latest Previou Daily Change s

close change in 2023 Prague 1295.81 1325.32 -2.23% +7.83% 00
Budapest 42050.6 42906.0 -1.99% -3.98% 5 6
Warsaw <.WIG20 1668.89 1705.91 -2.17% -6.87% >
Buchares 12040.4 12082.4 -0.35% +3.23% t 3 5
Ljubljan <.SBITO 1185.08 1186.45 -0.12% +12.99 a P> % Belgrade <.BELEX 898.10 898.95 -0.09% +8.91% 15>
Sofia <.SOFIX 600.12 602.79 -0.44% -0.23% >

Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
2-year <CZ2YT= 5.3890 0.0450 +314bp +29bps RR> s
5-year <CZ5YT= 4.8210 -0.0320 +286bp +18bps RR> s

<CZ10YT 4.5290 -0.0420 +251bp +13bps 10-year =RR> s
Poland
2-year <PL2YT= 5.8190 -0.2040 +357bp +4bps RR> s
5-year <PL5YT= 5.7660 -0.1460 +380bp +7bps RR> s

<PL10YT 5.8280 -0.1280 +381bp +4bps 10-year =RR> s

FORWARD

3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.06 6.67 5.89 7.19 Rep ><PRIBO

R=>
Hungary <HUFFRA 14.50 12.65 11.69 16.30 ><BUBOR

=>
Poland <PLNFRA 6.76 6.53 6.08 6.90 ><WIBOR

=>
Note: are for ask
FRA prices
quotes

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<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Czech confidence indicators Czech confidence indicators ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Karol Badohal in Warsaw, Jason Hovet in Prague and Krisztina Than in Budapest; Editing by Maju Samuel)

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