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FX weakens in rangebound trade, eyes on data



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>CEE MARKETS-FX weakens in rangebound trade, eyes on data</title></head><body>

PRAGUE, Sept 3 (Reuters) -Central Europe's currencies weakened a touch on Tuesday, stuck in tight ranges while taking in a new round of economic figures and waiting on U.S. data this week that may point to how deeply the Federal Reserve could cut interest rates.

In Hungary, the forint EURHUF= has been holding off July highs on the strong side of 390 since July.

It eased 0.2% to 393.20 to the euro on Tuesday after updated gross domestic product (GDP) data confirmed the first quarterly contraction since the start of 2023, as industry continues to weigh on any recovery.

The Czech crown EURCZK=, which has failed in recent weeks to firm past the psychological 25 per euro level, was down 0.1% at 25.057 after data showing a slower pace of real wage growth than expected, keeping interest rate cuts on the table, according to analysts.

"The development of wages in the second quarter should be an argument for the continued reduction of interest rates," Komercni Banka analysts said.

The Czech National Bank slowed its policy easing pace last month, cutting the main repo rate by 25 basis points, to bring it to 4.50%, after several 50-bp cuts.

In Poland, interest rate cuts were put on hold last year. Markets, however, will watch a central bank meeting on Wednesday to see whether policymakers may soon turn more dovish.

The zloty EURPLN= fell 0.1% to 4.2755 to the euro on Tuesday, remaining below the 4.30 level where it has been since mid-August.

"(The zloty) is pretty much rangebound; CEE3 is doing OK despite the fact that the dollar is stronger," said a Warsaw-based trader.

"There have been some comments that (Polish) rate cuts could come sooner than the market thinks and the market will be looking for anything from (Polish central bank Governor Adam)Glapinski on that."



CEE MARKETS

SNAPSHOT

AT 1140 CET





CURRENCIES






Latest

Previous

Daily

Change



trade

close

change

in 2024

Czech crown

EURCZK=

25.0570

25.0370

-0.08%

-1.42%

Hungary forint

EURHUF=

393.2000

392.3000

-0.23%

-2.55%

Polish zloty

EURPLN=

4.2755

4.2700

-0.13%

+1.61%

Romanian leu

EURRON=

4.9745

4.9740

-0.01%

-0.00%

Serbian dinar

EURRSD=

116.9500

117.0200

+0.06%

+0.25%

Note: daily change

calculated from



1800 CET










Latest

Previous

Daily

Change




close

change

in 2024

Prague

.PX

1601.90

1606.9600

-0.31%

+13.29%

Budapest

.BUX

72714.63

72789.23

-0.10%

+19.95%

Warsaw

.WIG20

2442.38

2456.07

-0.56%

+4.24%

Bucharest

.BETI

18139.91

18111.37

+0.16%

+18.01%











Spread

Daily





vs Bund

change in

Czech Republic





spread

2-year

CZ2YT=RR

3.3970

0.0090

+098bps

+1bps

5-year

CZ5YT=RR

3.6350

-0.0030

+143bps

+1bps

10-year

CZ10YT=RR

3.8810

-0.0100

+156bps

+1bps

Poland






2-year

PL2YT=RR

4.8000

-0.0570

+238bps

-6bps

5-year

PL5YT=RR

5.1970

-0.0470

+299bps

-3bps

10-year

PL10YT=RR

5.4430

-0.0630

+312bps

-5bps








FORWARD RATE AGREEMENTS






3x6

6x9

9x12

3M interbank

Czech Rep

CZKFRAPRIBOR=

3.93

3.63

3.39

4.36

Hungary

HUFFRABUBOR=

6.62

6.25

5.86

6.50

Poland

PLNFRAWIBOR=

5.76

5.46

5.07

5.85

Note: FRA quotes

are for ask prices





**************************************************************













Reporting by Jason Hovet in Prague, Anita Komuves in Budapest and Alan Charlish in Warsaw; Editing by Sharon Singleton

For related news and prices, click on the codes in brackets:
All emerging market news EMRG CEEU CEE/

Spot FX rates
Eastern Europe spot FX EEFX= Middle East spot FX MEFX=
Asia spot FX ASIAFX= Latin America spot FX LATAMFX=

Other news and reports
World central bank news CEN Economic Data Guide ECONGUIDE
Official rates GLOBAL/INT Emerging Diary EMRG/DIARY
Top events M/DIARY Diaries DIARY Diaries Index IND/DIARY
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