Czech crown hovers near 2-wk low, eyes retail data

PRAGUE, Oct 17 (Reuters) - The Czech crown hovered around 2-week lows versus the euro on Tuesday, lacking domestic impetus before Wednesday's release of August retail sales data expected to show mild growth slowdown.

The crown slid 0.1 percent on the session to trade at 28.345 per euro <0#EURCZK=> by 1410 GMT.

Analysts polled by Reuters forecast retail spending grew 5.8 percent year-on-year in August after a 6.4 percent gain a month earlier <ECONCZ>. The release is due out at 9 a.m. (0700 GMT), but the currency market has rarely reacted to the retail data.

"We expect the trend of retail sales growth to slow in the coming months due to gradually slowing wages dynamics," said Miroslav Plojhar, chief analyst at Citibank.

"Slowing retail sales should ease demand-side inflationary fears," he added.

The central bank's policymakers meet on interest rates next week but markets universally expect them to keep the key policy rate <CZCBIR=ECI> on hold after a quarter of a percentage point increase to 2.50 percent last month.

The record 75 basis point discount of Czech policy rates to the euro zone benchmark and a four-month-old political crisis has dampened investor appetite for Czech assets, but the robust economy and strong exports have held the crown's drop in check.

----------------- MARKET SNAPSHOT AT 1408 GMT ----------------- Crown/euro <EURCZK=> last deals at 28.345 (-0.11 pct) Crown/dollar <CZK=> at 22.558 bid (+0.36 pct)

5-year yield due Oct 2010 <CZ5YT=RR> 3.67 pct bid (-4 bps) 10-year yield due Jan 2016 <CZ10YT=RR> 3.86 pct bid (-4 bps)

5-yr CZK/EUR mid yield spread <DE114147=> -5 bps (vs -2) 10-yr CZK/EUR mid yield spread <DE113529=> 7 bps (vs 8)

Current levels versus prior domestic close at 1500 GMT ---------------------------------------------------------------

((Reporting by Marek Petrus; prague.newsroom@reuters.com; Editing by Gerrard Raven; Reuters Messaging: marek.petrus.reuters.com@reuters.net; +420 224 190 477))

- For previous updates on Czech currency moves click on [CZK/]

--------ECONOMIC DATA RELEASES (double click to access)-------- LIVE Czech economic data releases <ECONCZ> INSTANT VIEWs on Czech economic data [CZ/INSTANT]

---------------------------RELATED NEWS------------------------ Czech Market Debt [CZ-DBT] Czech forex [CZ-FRX] Hungary Market Report [FT/] Poland Market Report [PLN/] Emerging Market Debt [EMRG/DBT] Emerging forex [EMRG/FRX] All Emerging Markets news [EMRG] CEE indicators [CONV/DIARY] All East Europe News [EEU] E.Europe equities [.CEE] TOP NEWS -- Emerging markets [TOP/EMRG] TOP NEWS -- Convergence watch [TOP/EAST] Czech indicators [CZ/ECI] Hungary indicators [HU/ECI] Slovak indicators [SK/ECI] Polish indicators [PL/ECI] --------------------LIVE PRICES & DATA-------------------------

Crown Spot Against EUR <EURCZK=> Against USD <CZK=> Czech Bonds <0#CZBMK=> C.Europe Bonds <CEEBONDS> Crown FRAs <CZKFRA=TTKL> Central Bank Fixings <CNB02> Contrib. Cross Rates <CZKX1=> Czech Central Bank <CNB01> -------------------------------------------------------------- HOW TO FIND INFORMATION YOU NEED

|<REUTERS> | <NEWS> | <PHONE/HELP> |

|<EQUITY> | <BONDS>| <MONEY> | <COMMODITY> | <ENERGY> ---------------------------------------------------------------

Keywords: MARKETS CZECH CROWN CLOSE