CEE MARKETS-Hungary forint extends losses as eyes on Powell speech

    By Radu-Sorin Marinas
    BUCHAREST, Aug 27 (Reuters) - Hungary's forint extended
losses on Thursday, trading around two-month lows and lagging
its regional peers as investors looked ahead to a speech by the
U.S. Fed chair expected to unveil a new strategy for price
stability.
    Central Europe's worst-performing currency, having lost more
than 7% of its value against the euro this year, the forint has
been under recent pressure from dismal Hungarian GDP data, high
inflation and loose monetary policy.
    This week, the National Bank of Hungary kept its base rate
unchanged and announced an increase in weekly bond purchases.
That had driven yields lower, traders noted.
    By 1000 GMT, the forint was down 0.1%, trading at
356.02 against the euro. 
    Equilor analysts said earlier that if the 355.86 resistance
level was breached, "the 360-level could be reached in one
wave." .
    The Romanian leu was flat at 4.8425 per euro while
the zloty was 0.3% up at 4.4064 and the Czech crown
 up 0.1% at 26.2727. 
    Czech bond yields were a touch lower, with supply remaining
limited after debt managers easily sold offered amounts at an
auction on Wednesday.
    "The average price was somewhat higher than our
expectations, especially for the 2040 bond, which confirms our
view that the finance ministry is able to follow a very moderate
pace of issuance due to a lower-than-expected budget deficit,"
said Komercni Banka trader Marek Lesko.

           CEE        SNAPSHO   AT                         
           MARKETS    T        1150 CET           
                      CURRENC                              
                      IES                         
                      Latest   Previous  Daily    Change
                      bid      close     change   in 2020
 Czech                26.2890   26.3000   +0.04%     -3.26%
 crown                                            
 Hungary              356.200  355.8800   -0.09%     -7.03%
 forint                     0                     
 Polish                4.4092    4.4222   +0.29%     -3.47%
 zloty                                            
 Romanian              4.8425    4.8405   -0.04%     -1.12%
 leu                                              
 Croatian              7.5250    7.5263   +0.02%     -1.06%
 kuna                                             
 Serbian              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
 Prague                908.56  908.5700   -0.00%    -18.56%
 Budapest             35760.2  35915.81   -0.43%    -22.40%
                            1                     
 Warsaw               1839.81   1848.35   -0.46%    -14.43%
 Buchares             8878.74   8835.85   +0.49%    -11.01%
 t                                                
 Ljubljan              854.14    854.48   -0.04%     -7.75%
 a                                                
 Zagreb               1613.43   1614.17   -0.05%    -20.03%
 Belgrade  <.BELEX15   690.92    691.97   -0.15%    -13.82%
           >                                      
 Sofia                 432.05    437.61   -1.27%    -23.95%
                                                           
                      Yield    Yield     Spread   Daily
                      (bid)    change    vs Bund  change in
 Czech                                            spread
 Republic                                         
   2-year  <CZ2YT=RR   0.1690   -0.0250   +084bp      +0bps
           >                                   s  
   5-year  <CZ5YT=RR   0.6730   -0.0530   +134bp      -1bps
           >                                   s  
           <CZ10YT=R   1.0310   -0.0180   +149bp      +3bps
 10-year   R>                                  s  
 Poland                                                    
   2-year  <PL2YT=RR   0.1430   -0.0200   +081bp      +0bps
           >                                   s  
   5-year  <PL5YT=RR   0.7530   -0.0210   +142bp      +2bps
           >                                   s  
           <PL10YT=R   1.3490    0.0000   +181bp      +5bps
 10-year   R>                                  s  
           FORWARD                                         
                      3x6      6x9       9x12     3M
                                                  interbank
 Czech             <     0.37      0.38     0.42       0.34
 Rep       PRIBOR=>                               
 Hungary           <     0.76      0.84     0.90       0.62
           BUBOR=>                                
 Poland            <     0.24      0.24     0.24       0.23
           WIBOR=>                                
 Note:     are for ask prices                              
 FRA                                              
 quotes                                           
 ***********************************************           
 ***************                                  
 
 (Additional reporting by Anita Komuves in Budapest, Jason Hovet
in Prague and Alan Charlish in Warsaw; editing by John
Stonestreet)
  
 
 

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