CEE MARKETS-Forint eases on caution over Italy-EU dispute, GDP

* Markets cautious amid risks including Italy-EU dispute

* Q3 GDP seen slowing

* Markets seek direction after 3-day losing streak

(Recasts with new comments and background) BUDAPEST, Nov 13 (Reuters) - The forint eased on Tuesday with investors in Central Europe cautious ahead of the release of third-quarter economic output figures in the region and in the euro zone. The euro, the region's closely watched reference currency, held close to its lowest level since mid-2017, as Italy faced a deadline from the European Union (EU) to cut its budget deficit target. Central European currencies were mixed, with the forint and the leu easing 0.1 percent against the euro by 1405 GMT, while the zloty firmed 0.1 percent. Investors in the region's currency and stock markets waited for clear signs of market direction after three sessions of retreat that followed two weeks of gains, market participants said. Regional currencies may face additional pressure if Italy does not cut its deficit goal and disagreements with Brussels lead to further euro weakness, traders said. Bearish prospects for the euro, due to technical factors and worries over Italy, support a bullish view for the dollar versus Central European currencies, which may also weaken against the euro, Rabobank analyst Piotr Matys said in a note. Britain's exit from the European Union, which is also often mentioned as a risk factor, is unlikely to seriously affect the region's robustly growing economies, said Brett Diment, head of emerging debt at Aberdeen Standard Investments. "The only relevance is if it impacts the euro," he said. Analysts expect preliminary third-quarter economic output data due on Wednesday to slow. Poland's annual growth is seen declining to 4.7 percent from 5.1 percent in the second quarter, a still robust rate. Slowing growth in the euro zone, the region's main trade partner, is also a risk, market participants said. Analysts expect Wednesday's euro zone figures to show a steady 1.7 percent annual economic growth. "If GDP in the euro zone will be close to the consensus, I don't see any influence on the zloty," said Marcin Turkiewicz, currency dealer at mBank. In the region's currency markets, the forint led losses, after outperforming regional peers in the past weeks, while the crown firmed a shade. The crown has outperformed the forint and the zloty this year thanks to the Czech central bank's (CNB) gradual tightening of policy since August last year. But the euro's wobbles, coupled with dollar buying, have rendered the CNB's hikes in the past few months ineffective in further boosting the crown against its regional peers, even though the Polish and Hungarian central banks have kept their own rates at record lows.



Latest Previous Daily Change bid close change in 2018 Czech <EURCZK= 25.9480 25.9540 +0.02% -1.56% crown > Hungary EURHUF= 322.6400 322.2000 -0.14% -3.63% forint > Polish <EURPLN= 4.2960 4.2997 +0.09% -2.79% zloty > Romanian <EURRON 4.6615 4.6570 -0.10% +0.39% leu > Croatian <EURHRK= 7.4225 7.4255 +0.04% +0.11% kuna > Serbian <EURRSD= 118.2400 118.2700 +0.03% +0.22% dinar > Note: calculated from 1800 CET

daily change

Latest Previous Daily Change close change in 2018 Prague 1080.48 1081.760 -0.12% +0.22%


Budapest 38323.91 38108.46 +0.57% -2.68% Bucharest 8628.76 8661.23 -0.37% +11.29% Ljubljana <.SBITOP 811.73 817.69 -0.73% +0.66% > Zagreb 1758.24 1767.66 -0.53% -4.59% Belgrade <.BELEX1 749.30 744.56 +0.64% -1.38%


Sofia 595.30 596.08 -0.13% -12.13%


Yield Yield Spread Daily (bid) change vs Bund change


Czech spread


2-year <CZ2YT=R 1.4870 0.0070 +213bps +1bps


5-year <CZ5YT=R 1.8490 0.0390 +204bps +3bps


10-year <CZ10YT= 2.1240 0.0240 +173bps +2bps




3x6 6x9 9x12 3M

interban k

Czech Rep 2.05 2.20 2.35 1.99



Hungary 0.38 0.67 1.03 0.15

Note: FRA are for ask prices quotes



(Additional reporting by Karin Strohecker in London and Alicja Ptak in Warsaw; Editing by Mark Potter and Kirsten Donovan)