"The Polish zloty continues its two-week rally and should continue its trajectory ..., We think there is still plenty of room for a rally," ING said.
ING expects growing interest in the Czech crown and Polish zloty as markets continue to unwind some of the risk premium built up in the zloty in the first quarter, when the Polish currency trailed peers in central Europe.
The Czech crown traded at 23.48 against the euro at 0747 GMT, some way from a 15-year high of 23.233 reached earlier this month. On stock markets, Czech lender MONETA Money Bank posted a less-than-expected 6% year-on-year drop in net profit in the first quarter as it showed a net release of bad loan provisions. Its shares were up 0.6% in morning trade. In Hungary, state-owned Eximbank has issued a 5-year dollar-denominated benchmark bond worth $1.25 billion, with the yield reaching 6.32%.
The forint had risen 0.2% by mid-morning to trade at 373.05 against the euro.
After retreating from a peak of 369.60 last week when the central bank flagged it would narrow its rate corridor with a cut to the top rate - which it did on Tuesday - the forint is slowly edging back towards stronger levels again.
"The single factor supporting the forint right now is the 18% quick-deposit rate, which allows traders to play the carry trade during the long weekend that is ahead of us," a Budapest-based FX trader said.
"With the forint nearing 372, traders will open positions more cautiously as sudden bad news might easily swing back the forint to levels where the 18% quick-deposit rate doesn't yield enough," the trader added.
CEE SNAPSHO AT
MARKETS T 1031
CET
CURRENC
IES
Latest Previou Daily Change s
bid close change in 2023
EURCZK Czech <EURCZK 23.5010 23.5130 +0.05% +2.80%
= crown =>
EURHUF Hungary <EURHUF 373.050 373.800 +0.20% +7.07%
= forint => 0 0
EURPLN Polish <EURPLN 4.5890 4.5840 -0.11% +2.19%
= zloty =>
EURRON Romanian <EURRON 4.9405 4.9404 -0.00% +0.04%
= leu =>
EURRSD Serbian <EURRSD 117.170 117.270 +0.09% +0.11%
= dinar => 0 0
Note: calculated from 1800
daily CET
change
Latest Previou Daily Change s
close change in 2023
.PX Prague 1415.94 1409.37 +0.47% +17.83
00 %
.BUX Budapest 43791.6 43367.5 +0.98% -0.00%
8 2
.WIG20 Warsaw <.WIG20 1915.39 1888.61 +1.42% +6.89%
>
.BETI Buchares 12395.2 12380.1 +0.12% +6.27%
t 5 7
.SBITO Ljubljan <.SBITO 1237.13 1238.05 -0.07% +17.96
P a P> %
.BELEX Belgrade <.BELEX 902.49 903.82 -0.15% +9.44%
15 15>
.SOFIX Sofia <.SOFIX 611.30 609.40 +0.31% +1.63%
>
Yield Yield Spread Daily
(bid) change vs Bund change
in
Czech spread
Republic
CZ2YT= 2-year <CZ2YT= 5.7210 0.2440 +290bp +20bps
RR RR> s
CZ5YT= 5-year <CZ5YT= 5.0220 -0.0190 +260bp -6bps
RR RR> s
CZ10YT <CZ10YT 4.6450 -0.0030 +222bp -4bps
=RR 10-year =RR> s
Poland
PL2YT= 2-year <PL2YT= 5.9250 -0.1410 +310bp -19bps
RR RR> s
PL5YT= 5-year <PL5YT= 5.9540 -0.0210 +353bp -6bps
RR RR> s
PL10YT <PL10YT 5.9500 -0.0210 +353bp -6bps
=RR 10-year =RR> s
FORWARD
3x6 6x9 9x12 3M interba nk Czech <CZKFRA 7.19 6.79 6.07 7.18 Rep ><PRIBO
R=>
Hungary <HUFFRA 14.73 12.83 11.65 16.24 ><BUBOR
=>
Poland <PLNFRA 6.81 6.61 6.25 6.90 ><WIBOR
=>
Note: are for ask
FRA prices
quotes
********************************************
******************
(Reporting by Boldizsar Gyori in Budapest Editing by Mark Potter)
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