Slovak crown rangebound vs euro, eyes rate decision

...monthly policy meeting on Tuesday, dealers said. 
    The currency traded at 33.635 per euro  as of 1430 
GMT, compared with 33.575 late on Friday. 
    "Trading is calm but slightly nervous ahead of the central 
bank's meeting," one Bratislava-based trader said. "The rate 
decision, repo tender and subsequent (NBS') comments, all this 
can influence the exchange rate." 
    Most analysts expect the bank to cut the key two-week repo 
rate by 25-50 basis points from 4.75 percent to ease firming 
pressure on the crown currency. 
    The crown jumped over 3 percent to an all-time high of 
32.710 per euro last week following revaluation of its central 
parity within the Exchange Rate Mechanism 2. 
    The currency move sparked a massive intervention by the NBS, 
estimated at 1.4-2.0 billion euros. The bank also rejected all 
bids in the liquidity-draining repo tender last week to dent the 
unit's strength. 
    Dealers said trading will be edgy if the NBS slashes the key 
rate by 50 basis points, which would reduce premium over the 
euro zone benchmark to 50 basis points. 
    The crown could gain ground slightly if the bank reduces 
lending costs by 25 basis points or stays put, traders said. 
    The NBS board starts its rate-setting meeting at 0700 GMT, 
the verdict is expected between 0900 and 1100 GMT. 
------------------ MARKET SNAPSHOT AT 1430 GMT ----------------- 
Crown/euro  at 33.635 vs 33.575 on Friday 
Crown/dollar   at 25.180 vs 24.242 
5-yr govt bond  yield 4.102/3.938 pct vs 4.242/4.002 
7-yr govt bond  yield 4.230/4.084 pct vs 4.394/4.194 
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