FX mixed as EU finance ministers’ meeting in focus

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WARSAW — Central European currencies

traded mixed on Tuesday morning as a meeting of European Union

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finance ministers which will discuss funding for Hungary was

underway, while investors also eyed Poland’s rate-setting meet.

The European Commission approved Hungary’s post-pandemic

recovery plan on Nov. 30, but said Budapest would not receive

any payments — worth a total 5.8 billion euros — until it

implements reforms to bolster judicial independence and tackle

corruption.

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“The forint could be affected the most by the meeting of the

EU finance ministers where questions about EU funds will be

discussed … Any leaked information could have a significant

effect,” Takarekbank analysts wrote in a note.

At 0949 GMT the forint was 0.21% weaker against

the euro at 414.25. The Polish zloty, however, was

0.20% firmer at 4.7005.

The National Bank of Poland (NBP) is expected to leave its

main interest rate on hold at 6.75% at its meeting on Wednesday.

Governor Adam Glapinski will hold a press conference at 1400

GMT on Thursday.

“We are moving in a horizontal trend today with no issues in

the calendar … we are waiting for the MPC (monetary policy

committee) meeting but more we are waiting for the NBP

governor’s speech,” said Mateusz Sutowicz, a financial market

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analyst at Bank Millennium.

The central bank has kept rates steady at its last two

sittings, but Glapinski has not as yet said that the tightening

cycle is officially over.

Benchmark Polish 10-year bond yields were 4

basis points lower at 6.677, after rebounding by around 30 basis

points on Monday.

“Until Wednesday’s meeting of the MPC, a rise in yield

curves can be expected,” PKO BP analysts said in a note. “Yields

on 2-year bonds may permanently exceed 7%, and on 10-year bonds

they may increase towards 7.00%.”

The Czech crown and the Romanian leu

were broadly stable at 24.332 and 4.914, respectively.

CEE SNAPSH AT

MARKET OT 1049

S CET

CURREN

CIES

Latest Previo Daily Change

us

bid close change in

2022

EURCZK Czech 0 0 % %

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EURHUF Hungary 00 00 %

EURPLN Polish %

EURRON Romania % %

EURHRK Croatia

EURRSD Serbian 00 00 % %

Note: calculated 1800

daily from CET

change

Latest Previo Daily Change

us

close change in

2022

.PX Prague 1199.4 1202.7 -0.28%

3 900

.BUX Budapes 44452. 44666. -0.48% -12.36

t 46 01 %

.WIG20 Warsaw <.wig2> 4 4 %

.BETI Buchare <.beti st> 55 15 %

.SBITO Ljublja <.sbit p na op> 7 7 %

.CRBEX Zagreb <.crbe x> 7 6 %

.BELEX Belgrad <.bele e x15>

.SOFIX Sofia <.sofi x> %

Yield Yield Spread Daily

(bid) change vs change

Bund in

Czech spread

Republi

c

CZ2YT= ps

CZ5YT= ps

CZ10YT ps

Poland

PL2YT= 0 ps

PL5YT= 0 ps

PL10YT 0 ps

FORWAR

D

3×6 6×9 9×12 3M

interb

ank

Czech

Hungary

Poland

Note: are for ask

FRA prices

quotes

***************************************

***********************

(Reporting by Alan Charlish in Warsaw and Anita Komuves in

Budapest

Editing by Vinay Dwivedi)

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