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

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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.


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

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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.

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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.


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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


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

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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

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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.


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