Wires

CEE MARKETS-FX mildly stronger, Czech crown stabilizes after falls

BUDAPEST, Oct 25 (Reuters) - Central European currencies were mildly stronger on Friday, regaining some of the ground lost in the previous session on weak European activity data, but the prospect of an economic slowdown kept a lid on further gains. At 0853 GMT, most central European currencies were a shade stronger, with the Hungarian forint and the Polish zloty leading the region with a 0.1% gain. The Czech crown was unchanged in morning trade. Hungarian Prime Minister Viktor Orban has flagged further stimulus measures in response to weakness in the euro zone, its main trading partner, where business activity barely expanded in October according to a fresh survey. A currency dealer in Budapest said expectations by some players for a positive step by Moody's, which will review Hungary's credit rating later on Friday, lent some support to the forint, which has underperformed its peers this year. "The rating agency currently ranks (Hungary) at the bottom of the investment-grade category with a stable outlook," local brokerage Erste Investment said in a note. "If we take into account that the other two major credit rating agencies have upgraded Hungary this year, an outlook change by Moody's may also come into play." Erste Investment added, however, that after the forint's recent gains, which saw the currency drift away from its September record-lows versus the euro, its 100-day moving average at the 328 per euro mark posed an obstacle to further gains. The crown stabilized around 25.60 per euro after falling 0.4% on Wednesday, as central bank vice-governor Marek Mora was quoted by Bloomberg as saying the arguments for an interest rate hike have weakened since the last meeting. "It seems not even the dovish tone of the CNB has hurt the currency. It is still significantly weaker than the central bank's forecast model assumed, however, (at this next meeting) it will stay on the back burner," economists at CSOB said. "The domestic economy is not showing the best signs and risks and uncertainties abroad are not disappearing," the analysts said. "It still looks like the best scenario will be wait-and-see. After all there is nowhere (in rates) to hurry."

CEE SNAPSHO ATMARKETS T 1053

CET CURRENC IES

Latest Previou Daily Change

s

bid close change in 2019EURCZK Czech <EURCZK 25.5980 25.5930 -0.02% +0.43%= crown =>EURHUF Hungary <EURHUF 329.010 329.410 +0.12% -2.41%= forint => 0 0EURPLN Polish <EURPLN 4.2745 4.2799 +0.13% +0.35%= zloty =>EURRON Romanian <EURRON 4.7555 4.7575 +0.04% -2.13%= leu =>EURHRK Croatian <EURHRK 7.4500 7.4500 +0.00% -0.54%= kuna =>EURRSD Serbian <EURRSD 117.460 117.570 +0.09% +0.72%= dinar => 0 0Note: calculated from 1800daily CET

change

Latest Previou Daily Change

s

close change in 2019.PX Prague 1062.95 1067.14 -0.39% +7.74%

00

.BUX Budapest 42368.5 42475.5 -0.25% +8.25%0 3.WIG20 Warsaw <.WIG20 2187.36 2208.36 -0.95% -3.92%>.BETI Buchares 9637.72 9621.88 +0.16% +30.53t %.SBITO Ljubljan <.SBITO 867.45 873.73 -0.72% +7.86%P a P>.CRBEX Zagreb <.CRBEX 2018.91 2020.90 -0.10% +15.44> %.BELEX Belgrade <.BELEX 752.74 752.74 +0.00% -1.18%15 15>.SOFIX Sofia <.SOFIX 562.83 561.00 +0.33% -5.32%>

BONDS

Yield Yield Spread Daily(bid) change vs Bund change

in

Czech spread

Republic

CZ2YT= 2-year <CZ2YT= 1.3140 0.0790 +197bp +8bpsRR RR> sCZ5YT= 5-year <CZ5YT= 1.0710 0.0200 +170bp +0bpsRR RR> sCZ10YT <CZ10YT 1.3860 0.0150 +177bp -1bps=RR 10-year =RR> s

Poland

PL2YT= 2-year <PL2YT= 1.4870 -0.0180 +215bp -2bpsRR RR> sPL5YT= 5-year <PL5YT= 1.7400 0.0210 +237bp +1bpsRR RR> sPL10YT <PL10YT 2.0030 0.0200 +239bp +0bps=RR 10-year =RR> sFORWARD RATE AGREEME

NT

3x6 6x9 9x12 3M

interba nk

Czech <CZKFRA 2.20 2.17 2.06 2.18Rep ><PRIBO

R=>

Hungary <HUFFRA 0.29 0.33 0.31 0.21><BUBOR

=>

Poland <PLNFRA 1.74 1.70 1.67 1.72><WIBOR

=>

Note: are for askFRA prices

quotes

(Reporting by Gergely Szakacs and Jason Hovet Editing by Jacqueline Wong)