Currencies ease as dollar firms ahead of U.S. jobs data

Article content

BUDAPEST — Central European currencies

eased on Friday as the dollar firmed ahead of key U.S. payroll

data due later in the day, while last week’s rate hikes in

Hungary and the Czech Republic provided support for currencies

in the region.

“We don’t expect significant FX movement until the U.S. jobs

data, which could then move CEE currencies,” a trader in

Budapest said.

The U.S. dollar hit a fresh three-month high versus other

major currencies on Friday, as traders wagered strong U.S.


Article content

labor data could lift it even further. The jobs report is due

at 1230 GMT and is forecast to show a solid rise of 700,000.

The Hungarian forint slid 0.17% to trade at 351.70

per euro, staying within the tight range where it has been

trading for the past week.

The Polish zloty eased 0.17% to 4.5238 versus the

common currency, while the Czech crown was 0.08%

weaker, trading at 25.560 to the euro.

The forint and the crown have been buoyed by last week’s

rate hikes in Hungary and the Czech Republic, where central

banks responded to rising inflation as their economies are

recovering from the pandemic.

According to a Reuters poll of analysts, the Czech crown

will gain 2%, supported by further rate hikes, while the Polish

zloty should appreciate a similar amount.


Article content

Hungary’s forint was forecast to move only slightly higher

over the coming 12 months, with questions over the tightening

path ahead.

The minutes of the Czech central bank’s latest meeting

showed a majority saw the likelihood of starting a gradual

tightening phase and that rates could continue rising in the

second half of the year.

“The central bank board meeting minutes confirmed the rise

in interest rates was the first move, but certainly not the last

this year,” Komercni Banka said in a note.

Forward rate markets are pricing in chances for as many as

three more hikes this year. Rates gained on the short end after

the minutes, but were lower on the long end, following core

European rates down.

Stocks in the region were mixed with Prague and Warsaw


Article content

gaining 0.5% each, while Bucharest was up 0.4%.





Latest Previous Daily Change

bid close change in


EURCZK= Czech %

EURHUF= Hungary 0 %

EURPLN= Polish %

EURRON= Romanian

EURHRK= Croatian %

EURRSD= Serbian 0 %

Note: calculated from 1800

daily CET


Latest Previous Daily Change

close change in


.PX Prague 1149.96 1144.400 +0.49% +11.9

0 6%

.BUX Budapest 47910.7 47908.81 +0.00% +13.7

0 8%

.WIG20 Warsaw 2261.59 2250.58 +0.49% +13.9


.BETI Buchares 11984.1 11937.05 +0.39% +22.2

t 3 2%

.SBITOP Ljubljan <.sbitop a> 7%

.CRBEX Zagreb 1972.11 1971.32 +0.04% +13.3


.BELEX1 Belgrade <.belex1> %

.SOFIX Sofia 555.90 555.62 +0.05% +24.2


Yield Yield Spread Daily

(bid) change vs Bund change


Czech spread


CZ2YT=R 2-year s

CZ5YT=R 5-year s

CZ10YT= s


PL2YT=R 2-year s

PL5YT=R 5-year s

PL10YT= s


3×6 6×9 9×12 3M



Czech 1.03 1.33 1.63 0.66


Hungary 1.51 1.86 2.02 1.05

Poland 0.31 0.51 0.72 0.21

Note: are for ask

FRA prices




(Additional reporting by Jason Hovet in Prague and Alan

Charlish in Warsaw; Editing by Shounak Dasgupta)


In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post.


    Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

    Source link


    Paying with e-CNY? First show a digital ID

    Digital currencies are almost here, with China’s e-CNY possibly off the block as early as the 2022 Beijing Winter Olympics. But among the...

    Thailand packs its tourism hopes in ‘Phuket Sandbox’

    Along Phuket’s Patong beach, once a byword for louche and loud foreign tourists, restaurants and bars are shuttered and the inviting blue waters...

    Alcoa details plans to cut carbon emissions from making alumina

    Article content MELBOURNE — Alcoa Corp detailed plans on Thursday for a “step change” in alumina production that would allow it to cut...

    How to resolve QuickBooks error h202?

    Many customers have reported seeing the QuickBooks error h202 while attempting to switch from single-user mode to multi-user mode and access a QuickBooks company file in multi-user mode

    Current Offers – Save on the purchase of a hoverboard

    In order to really save money when buying a turbowheel swift hoverboard it is always worth taking a look at the current offers.Here you will...