PRAGUE, July 15 (Reuters) - Central Europe's currencies
mostly edged higher on Monday, with Poland's zloty close to
multi-year highs as markets assessed the weekend assassination
attempt on Donald Trump and looked forward to a European Central
Bank meeting this week.
The Czech crown lagged and again retreated to a fresh
three-month low, where it has sat since lower-than-expected
inflation figures last week increased bets on faster interest
rate cuts than previously expected.
Markets saw a muted reaction following the shooting attack
on Trump, a U.S. presidential candidate and former president, on
Saturday as investors considered whether it would increase his
chances of an election victory, which supported riskier assets.
The zloty moved 0.1% higher to 4.2505 to the euro,
near a four-year high on the strong side of the 4.25 level hit
in May.
Bank Millennium analysts said stronger movement could come
just before the ECB's rate meeting on Thursday, when
policymakers were expected to hold fire before continuing with
more interest rate cuts later this year.
"The beginning of this week may therefore bring about the
continuation of summer stagnation, although geopolitical factors
may be a potential source of volatility. In particular in the
United States after the failed assassination attempt on (Donald)
Trump," the bank said in a note.
"However, in our opinion, the situation on the U.S.
political scene should not generate strong movements on
markets."
Hungary's forint rose by 0.2% to 391.45 per euro,
following four consecutive weekly gains amid better risk
sentiment.
The crown, though, dropped 0.2% to 25.40 to the
euro, touching a session low of 24.429, its weakest since April.
CSOB said markets would watch for central banker comments
leading up to the bank's Aug. 1 policy meeting, where it may
slow its rate-cutting pace, with CSOB's analysts saying comments
so far since June inflation data have been on the hawkish side.
ING also said central bankers may look to counter dovish
market bets.
"Every currency in the CEE region is focusing on different
drivers these days," ING said. "EUR/CZK remains a rates play in
our view, and central bankers' pushback of dovish bets could
come into play this week."
CEE SNAPSHOT AT
MARKETS 1235
CET
CURRENCIES
Latest Previo Daily Change
us
trade close change in 2024
Czech 0
Hungary 00
Polish Romania Serbian 00
Note: calcula 1800 CET
daily ted
change from
Latest Previo Daily Change
us
close change in 2024
Prague 1593.36 1590.4 +0.19% +12.68
000 %
Budapes 72346.02 72253. +0.13% +19.34
t 66 %
Warsaw 9
Buchare 18528.74 18507. +0.12% +20.54
st 05 %
Spread Daily
vs Bund change
in
Czech spread
Republi
c
0
Poland
0
0
0
FORWARD RATE
AGREEMENTS
3x6 6x9 9x12 3M
interba
nk
Czech Hungary Poland Note: are for
FRA ask
quotes prices