U.S. markets closed
  • S&P Futures

    3,842.25
    +33.00 (+0.87%)
     
  • Dow Futures

    31,140.00
    +228.00 (+0.74%)
     
  • Nasdaq Futures

    13,068.00
    +157.00 (+1.22%)
     
  • Russell 2000 Futures

    2,233.40
    +34.20 (+1.56%)
     
  • Crude Oil

    62.56
    +1.06 (+1.72%)
     
  • Gold

    1,749.00
    +20.20 (+1.17%)
     
  • Silver

    26.95
    +0.51 (+1.95%)
     
  • EUR/USD

    1.2085
    -0.0003 (-0.02%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • Vix

    27.95
    -0.94 (-3.25%)
     
  • GBP/USD

    1.3984
    +0.0062 (+0.44%)
     
  • USD/JPY

    106.5410
    +0.0390 (+0.04%)
     
  • BTC-USD

    46,474.08
    +1,011.84 (+2.23%)
     
  • CMC Crypto 200

    928.61
    -4.52 (-0.48%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    29,550.23
    +584.22 (+2.02%)
     

CEE MARKETS-Most currencies flat, zloty inches lower after cenbank governor's comments

Anita Komuves and Luiza Ilie
·4 min read

By Anita Komuves and Luiza Ilie BUDAPEST/BUCHAREST, Jan 18 (Reuters) - Most central European currencies were little changed on Monday, while the zloty edged lower after the Polish central bank's governor flagged the possibility of further rate cuts to help the pandemic-hit economy. Polish central bank chief Adam Glapinski said on Friday that interest rates could drop below zero if the COVID-19 pandemic causes further, significant damage to the economy, adding that his base scenario was no change in borrowing costs. The Polish bank left its base rate unchanged at 0.1% last Wednesday. The zloty slid 0.08% to 4.5430 per euro, while other currencies in the region were practically unchanged. The Hungarian forint was just 0.06% weaker, trading at 360.650. "Globally, there is sort of a sense of risk-aversion ... maybe there is a slight depreciation movement in the zloty but really this is not clear, we are stuck in a range," a Warsaw-based currency trader said. Trade was also thin as markets in the U.S. are closed for a holiday. "The year is off to a slow start as investors are waiting, watching virus numbers and whether there will be stricter lockdowns, for example, in Germany," a trader in Budapest said. Countries in the region were hit hard by the second wave of the pandemic and governments, while central banks are working hard to trigger a much-awaited rebound in their economies. The Romanian leu was flat at 4.8740 against the euro, after the central bank unexpectedly cut its benchmark interest rate by a quarter-point to 1.25% on Friday. Even before the pandemic, Romania was struggling with a widening budget deficit, eroded by years of political instability and fiscal largesse. A new centre-right government was sworn in December, easing some of the instability. Erste Bank said in a note that a weaker-than-expected economic growth forecast and a benign inflation outlook were the likely reasons for the unexpected cut on Friday. "The central bank still highlights the FX importance in its policymaking ... Hence, further policy easing remains a function of EUR/RON stability." One-year money market rates fell to 1.79% from 1.98% in the previous session. Most stock markets in the region eased. Warsaw's equities weakened 0.22%, while Budapest was down 0.64%. CEE SNAPSHO AT MARKETS T 1148 CET CURRENC IES Latest Previous Daily Change bid close change in 2021 EURCZK= Czech <EURCZK= 26.1950 26.2000 +0.02% +0.13% crown > EURHUF= Hungary <EURHUF= 360.650 360.4500 -0.06% +0.57% forint > 0 EURPLN= Polish <EURPLN= 4.5430 4.5395 -0.08% +0.36% zloty > EURRON= Romania <EURRON= 4.8740 4.8755 +0.03% -0.18% n leu > EURHRK= Croatia <EURHRK= 7.5478 7.5525 +0.06% -0.00% n kuna > EURRSD= Serbian <EURRSD= 117.570 117.6000 +0.03% +0.00% dinar > 0 Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2021 .PX Prague 1073.88 1073.530 +0.03% +4.55% 0 .BUX Budapes 43922.3 44204.45 -0.64% +4.31% t 2 .WIG20 Warsaw 1981.37 1985.68 -0.22% -0.13% .BETI Buchare 10278.9 10210.81 +0.67% +4.83% st 0 .SBITOP Ljublja <.SBITOP 953.53 952.73 +0.08% +5.85% na > .CRBEX Zagreb 1821.35 1827.63 -0.34% +4.72% .BELEX1 Belgrad <.BELEX1 734.20 736.06 -0.25% -1.92% 5 e 5> .SOFIX Sofia 469.72 465.71 +0.86% +4.96% Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republi c CZ2YT=R <CZ2YT=R 0.2460 -0.0180 +097bp -1bps R 2-year R> s CZ5YT=R <CZ5YT=R 0.7710 -0.0260 +151bp -2bps R 5-year R> s CZ10YT= <CZ10YT= 1.2610 -0.0160 +180bp -2bps RR 10-year RR> s Poland PL2YT=R <PL2YT=R 0.0250 -0.0540 +075bp -5bps R 2-year R> s PL5YT=R <PL5YT=R 0.3250 -0.0740 +106bp -7bps R 5-year R> s PL10YT= <PL10YT= 1.1880 -0.0170 +173bp -2bps RR 10-year RR> s FORWARD 3x6 6x9 9x12 3M interba nk Czech 0.38 0.41 0.52 0.36 Rep <PRIBOR= > Hungary 0.75 0.77 0.79 0.75 Poland 0.17 0.16 0.17 0.21 Note: are for ask FRA prices quotes ********************************************* ***************** (Reporting by Anita Komuves in Budapest, Luiza Ilie in Bucharest and Alan Charlish in Warsaw; Editing by Rashmi Aich)