CEE MARKETS-Forint extends losses ahead of central bank meeting on Tuesday

    By Anita Komuves
    BUDAPEST, Aug 24 (Reuters) - Most Central European
currencies held stable on Monday with the Hungarian forint
bucking the trend and easing ahead of the central bank's
rate-setting meeting on Tuesday. 
    The Hungarian forint started to weaken last Monday and broke
out of the 344-348 range of the previous weeks. The currency
 was trading 0.3% lower, at 351.73 per euro by 0849
GMT.
    "This is normal, the levels around 345 per euro and under
were a bit too strong as monetary policy is quite loose and it
seems unlikely to change," an FX trader in Budapest said.
    "Also, real interest rates are low in Hungary while
inflation is causing a problem," he added.
    Hungarian headline inflation accelerated to an
annual 3.8% in July, well above forecasts. 
    A deeper-than-expected, 13.6% annual drop in second-quarter
GDP also put the forint under pressure, analysts said last week.
    According to a Reuters poll of economists, the National Bank
of Hungary (NBH) is likely to leave interest rates unchanged on
Tuesday. Some, however, expect another cut in its base rate
later this year after the unexpected slump in Q2 economic
output.
    Reacting to the weak economic data, Prime Minister Viktor
Orban said on Friday that his government would draft a two-year
plan to boost the economy by the middle of next month.
 
    Elswhere, the Czech crown was little moved, easing
0.09% to 26.110 versus the common currency. The Polish zloty
 firmed 0.17% and was trading at 4.4030 per euro while
the Romanian leu was stable. 
    Most Central European assets firmed, in line with their
European peers that bounced from a two-week low as signs of
progress in developing a COVID-19 treatment offset fears about a
resurgence in virus cases.
    Warsaws's stock index led gains in the region,
firming 0.47% while Bucharest's equities were up 0.45%.
Prague's assets were up 0.23% and Budapest's blue chip
index slid 0.26%.
   
                     CEE       SNAPSHO   AT                     
                     MARKETS   T        1048             
                                        CET              
                               CURRENC                          
                               IES                       
                               Latest   Previou  Daily   Change
                                        s                
                               bid      close    change  in 2020
 EURCZK=  Czech      <EURCZK=  26.1100  26.0860  -0.09%   -2.60%
          crown      >                                   
 EURHUF=  Hungary    <EURHUF=  351.730  350.660  -0.30%   -5.85%
          forint     >               0        0          
 EURPLN=  Polish     <EURPLN=   4.4030   4.4105   +0.17   -3.33%
          zloty      >                                %  
 EURRON=  Romanian   <EURRON=   4.8400   4.8419   +0.04   -1.07%
          leu        >                                %  
 EURHRK=  Croatian   <EURHRK=   7.5340   7.5275  -0.09%   -1.18%
          kuna       >                                   
 EURRSD=  Serbian    <EURRSD=  117.500  117.600   +0.09   +0.06%
          dinar      >               0        0       %  
          Note:      calculated from             1800           
          daily                                  CET     
          change                                         
                                                                
                               Latest   Previou  Daily   Change
                                        s                
                                        close    change  in 2020
 .PX      Prague                898.79  896.700   +0.23  -19.44%
                                              0       %  
 .BUX     Budapest             35950.1  36043.5  -0.26%  -21.99%
                                     4        6          
 .WIG20   Warsaw               1829.19  1820.60   +0.47  -14.92%
                                                      %  
 .BETI    Bucharest            8764.16  8725.12   +0.45  -12.16%
                                                      %  
 .SBITOP  Ljubljana  <.SBITOP   855.49   856.13  -0.07%   -7.60%
                     >                                   
 .CRBEX   Zagreb               1599.70  1599.18   +0.03  -20.71%
                                                      %  
 .BELEX1  Belgrade   <.BELEX1   680.94   681.55  -0.09%  -15.06%
 5                   5>                                  
 .SOFIX   Sofia                 434.42   435.14  -0.17%  -23.54%
                                                                
                               Yield    Yield    Spread  Daily
                               (bid)    change   vs      change
                                                 Bund    in
          Czech                                          spread
          Republic                                       
 CZ2YT=R    2-year   <CZ2YT=R   0.1370  -0.0010   +081b    -1bps
 R                   R>                              ps  
 CZ5YT=R    5-year   <CZ5YT=R   0.6140  -0.0870   +130b   -10bps
 R                   R>                              ps  
 CZ10YT=    10-year  <CZ10YT=   0.9820  -0.0240   +147b    -4bps
 RR                  RR>                             ps  
          Poland                                                
 PL2YT=R    2-year   <PL2YT=R   0.1490  -0.0070   +082b    -2bps
 R                   R>                              ps  
 PL5YT=R    5-year   <PL5YT=R   0.7440   0.0120   +143b    +0bps
 R                   R>                              ps  
 PL10YT=    10-year  <PL10YT=   1.3420   0.0190   +183b    +0bps
 RR                  RR>                             ps  
                     FORWARD                                    
                               3x6      6x9      9x12    3M
                                                         interba
                                                         nk
          Czech Rep               0.36     0.36    0.41     0.34
                     <PRIBOR=                            
                     >                                   
          Hungary                 0.79     0.83    0.89     0.61
                                                         
          Poland                  0.23     0.23    0.23     0.23
                                                         
          Note: FRA  are for ask                                
          quotes     prices                              
          *********************************************         
          *****************                              
 

 (Reporting by Anita Komuves; Editing by Shailesh Kuber)
  
 
 

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