Slovak crown calm, eyes rate meeting for impulse

...monetary policy meeting on Tuesday. 
    The crown was quoted at 33.565 per euro  as of 0800 
GMT, compared with 33.575 late on Friday. 
    "It's quiet now. We'll see how fears of a rate cut influence 
the crown later in the day," said VUB Bank dealer Laco Benedek. 
    A majority of analysts expect the central bank to cut the 
main two-week repo rate by 25 or 50 basis points from 4.75 
percent on Tuesday, according to a Reuters poll, after a rising 
crown has effectively tightened monetary conditions. 
    The Slovak unit jumped by over 3 percent to a record high of 
32.710 per euro last week after revaluation of its parity rate 
in the ERM-2 exchange rate mechanism on March 16. 
    Some analysts, however, expected the central bank to take a 
cautious approach and keep rates on hold because of persisting 
inflation risks from energy prices. 
    Traders saw room for the crown to firm if the central bank 
held rates unchanged. 
    "The crown could move towards 33.0 per euro. But it is 
unlikely to firm through it because of fears of a central bank 
reaction," Benedek said. 
    The central bank intervened to halt crown firming last week, 
saying it considered levels around the ERM-2 parity rate of 
35.4424 per euro as justified by economic fundamentals. 
------------------ MARKET SNAPSHOT AT 0800 GMT ----------------- 
Crown/euro  at 33.565 vs 33.575 on Friday 
Crown/dollar   at 25.263 vs 24.242 
5-yr govt bond  yield 4.245/4.025 pct vs 4.242/4.002 
7-yr govt bond  yield 4.250/4.030 pct vs 4.394/4.194 
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