CEE MARKETS-Forint hits 6-week high as FX gain after British vote

    By Jason Hovet and Gergely Szakacs
    PRAGUE/BUDAPEST, Dec 13 (Reuters) - Hungary's forint rose to
a six-week high on Friday as Central European currencies firmed
after British Prime Minister Boris Johnson's resounding election
victory and progress in U.S.-China trade talks lifted sentiment.
    A win for the Conservative Party was expected to clear
political gridlock over Britain's exit from the European Union,
which would clear up uncertainty hanging over Europe's
economies.
    "This has more of a positive message. It cuts uncertainty,
regardless of whether you like the outcome or not," a
Budapest-based trader said.
    The forint firmed past the resistance level of 330
to the euro, bidding at 328.80, up 0.15%, at 0915 GMT.
    Poland's zloty gained 0.3% and the Romanian leu
 was a touch up.
    The Czech crown also edged past the psychological
level of 25.50 to the euro, which has cut short gains this
quarter, and bid at 25.497 per euro, up 0.1%.
    Sentiment was helped also by steps forward in talks between
the United States and China to end trade disputes, dealers said.
    A Prague dealer said it was not certain how big of a break
the crown could see, if any.
    "We have (the central bank) next week, as well, so once
there are some hawkish comments, and the external factors now
look rather good, we might get below (25.40) but I don't believe
in a big real break before the end of next week or so," the
trader said.
    On stock markets, Prague's index gained a third of a
percent while Budapest rose 0.8% and Warsaw half
a percent.
    Shares in Czech lender Moneta Money Bank rose
1.2% to hit their highest level since April 2018 as the bank
completed a deal to buy the Czech building savings and mortgage
business of Germany's Wuestenrot & Wuerttembergische late on
Thursday.
    
                                CEE MARKETS        SNAPSHOT    AT                        
                                                                 1015 CET                
                                                   CURRENCIES                            
                                                   Latest      Previous        Daily     Change
                                                   bid         close           change    in 2019
 EURCZK=    Czech crown                            25.4970     25.5230         +0.10%    +0.82%
 EURHUF=    Hungary forint                         328.8000    329.3000        +0.15%    -2.35%
 EURPLN=    Polish zloty                           4.2750      4.2871          +0.28%    +0.34%
 EURRON=    Romanian leu                           4.7799      4.7816          +0.04%    -2.63%
 EURHRK=    Croatian kuna                          7.4380      7.4375          -0.01%    -0.38%
 EURRSD=    Serbian dinar                          117.3700    117.4900        +0.10%    +0.79%
            Note: daily change  calculated from                                1800 CET  
                                                                                         
                                                   Latest      Previous        Daily     Change
                                                               close           change    in 2019
 .PX        Prague                                 1095.55     1091.7800       +0.35%    +11.05%
 .BUX       Budapest                               45752.10    45382.68        +0.81%    +16.90%
 .WIG20     Warsaw                                 2112.26     2102.19         +0.48%    -7.22%
 .BETI      Bucharest                              9845.36     9779.39         +0.67%    +33.34%
 .SBITOP    Ljubljana                              921.40      916.05          +0.58%    +14.56%
 .CRBEX     Zagreb                                 1979.25     1977.70         +0.08%    +13.18%
 .BELEX15   Belgrade                               771.83      775.63          -0.49%    +1.33%
 .SOFIX     Sofia                                  543.12      543.50          -0.07%    -8.64%
                                                   BONDS                                 
                                                   Yield       Yield           Spread    Daily
                                                   (bid)       change          vs Bund   change in
            Czech Republic                                                               spread
 CZ2YT=RR   2-year                                 1.5500      -0.0030         +217bps   -1bps
 CZ5YT=RR   5-year                                 1.3730      0.1110          +189bps   +10bps
 CZ10YT=RR  10-year                                1.5310      0.0490          +177bps   +3bps
            Poland                                                                       
 PL2YT=RR   2-year                                 1.4260      0.0200          +205bps   +2bps
 PL5YT=RR   5-year                                 1.7950      0.0180          +231bps   +0bps
 PL10YT=RR  10-year                                2.0350      0.0320          +228bps   +1bps
                                FORWARD            RATE        AGREEMENT                 
                                                   3x6         6x9             9x12      3M interbank
            Czech Rep                              2.25        2.26            2.20      2.18
            Hungary                                0.26        0.31            0.34      0.16
            Poland                                 1.74        1.73            1.71      1.70
            Note: FRA quotes    are for ask prices                                       
            **************************************************************
                                                                                         
 
 (Reporting by Jason Hovet in Prague and Gergely Szakacs in
Budapest, additional reporting by Alan Charlish in Warsaw;
Editing by Angus MacSwan)
  

Source: Read Full Article