CEE MARKETS-Currencies firm, forint regains some of its losses as dollar slides

By Anita Komuves BUDAPEST, Aug 28 (Reuters) - Most Central European currencies firmed and the forint recouped some of its recent losses on Friday as the dollar slid after U.S. Federal Reserve chairman Jerome Powell announced a policy shift on inflation. The Hungarian forint weakened for two weeks and touched two-month lows in the previous session. On Friday it edged up 0.17% to trade at 355.88 per euro. "Based on the technical picture I expect a correction in the EUR/HUF exchange rate which could firm back as far as 352.5," an FX trader in Budapest said. "Macroeconomic data spoiled investors' mood lately but those numbers will get better in the next quarter. A lot will depend on the September inflation report of the central bank." The currency broke away from its regional peers in mid-August as it came under pressure from dismal Hungarian GDP data, high inflation and loose monetary policy. Inflation came in at a higher-than-expected annual 3.8% in July and GDP dropped by 13.6% year-on-year in Q2. The Romanian leu was little moved and trading at 4.8395 per euro ahead of a vote of no confidence against the government of Ludovic Orban on Monday. The vote adds to years of political instability that have kept the currency under pressure. "If the vote of no confidence was going to be successful this might put pressure on the leu, at least short term," Commerzbank said in a note. "In this case Orban’s government will continue governing until the parliamentary elections in December, and as a result the effects on the leu are likely to be limited." Elsewhere, the Czech crown firmed 0.1% and was trading at 26.260 versus the common currency. The Polish zloty firmed 0.17% to 4.4059 per euro. Stocks in the region were mixed, with Prague's equities up 0.25% and Budapest sliding 0.91%. Warsaw's index was down 0.28% while Bucharest's stock market edged up 0.03%. CEE SNAPSHO AT MARKETS T 1052 CET CURRENC IES Latest Previous Daily Change bid close change in 2020 EURCZK= Czech <EURCZK= 26.2600 26.2850 +0.10 -3.15% crown > % EURHUF= Hungary <EURHUF= 355.880 356.5000 +0.17 -6.95% forint > 0 % EURPLN= Polish <EURPLN= 4.4059 4.4132 +0.17 -3.39% zloty > % EURRON= Romanian <EURRON= 4.8395 4.8385 -0.02% -1.06% leu > EURHRK= Croatian <EURHRK= 7.5250 7.5265 +0.02 -1.06% kuna > % EURRSD= Serbian <EURRSD= 117.500 117.6000 +0.09 +0.06% dinar > 0 % Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 .PX Prague 906.15 903.8800 +0.25 -18.78% % .BUX Budapest 35148.4 35470.36 -0.91% -23.73% 2 .WIG20 Warsaw 1841.40 1846.50 -0.28% -14.36% .BETI Buchares 8877.30 8874.51 +0.03 -11.03% t % .SBITOP Ljubljan <.SBITOP 852.43 853.53 -0.13% -7.93% a > .CRBEX Zagreb 1614.16 1616.34 -0.13% -19.99% .BELEX1 Belgrade <.BELEX1 692.58 690.44 +0.31 -13.61% 5 5> % .SOFIX Sofia 430.27 430.86 -0.14% -24.27% Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republic CZ2YT=R 2-year <CZ2YT=R 0.1350 -0.0470 +078b -4bps R R> ps CZ5YT=R 5-year <CZ5YT=R 0.6700 -0.0510 +130b -5bps R R> ps CZ10YT= <CZ10YT= 1.0260 -0.0260 +141b -5bps RR 10-year RR> ps Poland PL2YT=R 2-year <PL2YT=R 0.1430 -0.0010 +079b +0bps R R> ps PL5YT=R 5-year <PL5YT=R 0.7950 0.0190 +143b +2bps R R> ps PL10YT= <PL10YT= 1.4180 0.0430 +180b +2bps RR 10-year RR> ps FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.37 0.39 0.46 0.34 Rep <PRIBOR= > Hungary 0.77 0.86 0.93 0.62 Poland 0.25 0.26 0.27 0.23 Note: are for ask FRA prices quotes ********************************************* ***************** (Additional reporting by Jason Hovet in Prague. Editing by Carmel Crimmins)