CEE MARKETS-Currencies ease as dollar firms ahead of U.S. jobs data

By Anita Komuves BUDAPEST, July 2 (Reuters) - Central European currencies eased on Friday as the dollar firmed ahead of key U.S. payroll data due later in the day, while last week's rate hikes in Hungary and the Czech Republic provided support for currencies in the region. "We don't expect significant FX movement until the U.S. jobs data, which could then move CEE currencies," a trader in Budapest said. The U.S. dollar hit a fresh three-month high versus other major currencies on Friday, as traders wagered strong U.S. labour data could lift it even further. The jobs report is due at 1230 GMT and is forecast to show a solid rise of 700,000. The Hungarian forint slid 0.17% to trade at 351.70 per euro, staying within the tight range where it has been trading for the past week. The Polish zloty eased 0.17% to 4.5238 versus the common currency, while the Czech crown was 0.08% weaker, trading at 25.560 to the euro. The forint and the crown have been buoyed by last week's rate hikes in Hungary and the Czech Republic, where central banks responded to rising inflation as their economies are recovering from the pandemic. According to a Reuters poll of analysts, the Czech crown will gain 2%, supported by further rate hikes, while the Polish zloty should appreciate a similar amount. Hungary's forint was forecast to move only slightly higher over the coming 12 months, with questions over the tightening path ahead. The minutes of the Czech central bank's latest meeting showed a majority saw the likelihood of starting a gradual tightening phase and that rates could continue rising in the second half of the year. "The central bank board meeting minutes confirmed the rise in interest rates was the first move, but certainly not the last this year," Komercni Banka said in a note. Forward rate markets are pricing in chances for as many as three more hikes this year. Rates gained on the short end after the minutes, but were lower on the long end, following core European rates down. Stocks in the region were mixed with Prague and Warsaw gaining 0.5% each, while Bucharest was up 0.4%. CEE SNAPSHO AT MARKETS T 1054 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech % EURHUF= Hungary 0 % EURPLN= Polish % EURRON= Romanian EURHRK= Croatian % EURRSD= Serbian 0 % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1149.96 1144.400 +0.49% +11.9 0 6% .BUX Budapest 47910.7 47908.81 +0.00% +13.7 0 8% .WIG20 Warsaw 2261.59 2250.58 +0.49% +13.9 9% .BETI Buchares 11984.1 11937.05 +0.39% +22.2 t 3 2% .SBITOP Ljubljan <.SBITOP 1128.48 1124.10 +0.39% +25.2 a > 7% .CRBEX Zagreb 1972.11 1971.32 +0.04% +13.3 9% .BELEX1 Belgrade <.BELEX1 772.39 771.88 +0.07% +3.18 5 5> % .SOFIX Sofia 555.90 555.62 +0.05% +24.2 2% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic CZ2YT=R 2-year s CZ5YT=R 5-year s CZ10YT= s Poland PL2YT=R 2-year s PL5YT=R 5-year s PL10YT= s FORWARD 3x6 6x9 9x12 3M interb ank Czech 1.03 1.33 1.63 0.66 Rep Hungary 1.51 1.86 2.02 1.05 Poland 0.31 0.51 0.72 0.21 Note: are for ask FRA prices quotes ********************************************** **************** (Additional reporting by Jason Hovet in Prague and Alan Charlish in Warsaw; Editing by Shounak Dasgupta)