* FX, stocks rise, mood improves slightly
* Investors eyeing Polish wage data, German ZEW index
By Marius Zaharia
BUCHAREST, Aug 18 (Reuters) - Central European currencies
were a touch stronger on Tuesday after sharp losses in the
previous two sessions, and traders were waiting for clues from
key releases later in the day, including Polish wage data.
At 0730 GMT, the Polish zloty <EURPLN=> was 0.3 percent
stronger, the Hungarian forint <EURHUF=> and the Czech crown
<EURCZK=> were up 0.2 percent, while the Romanian leu <EURRON=>
was flat.
"Euro-yen and euro-dollar gained, and they seem to be a good
proxy for risk-appetite, so I think the zloty will gain today,"
said Jakub Wiraszka, FX trader at BRE Bank in Warsaw.
"The mood has been swinging recently because on the one hand
we've seen quite a lot of positive data but still there are
economies that really do not look good," he added.
Polish wage data may turn out to be key for the zloty,
especially after central bank governor Slawomir Skrzypek said on
Monday the bank was still in easing bias [].
"If we are right in our call for weak labour market data and
an even larger decline in July industrial activity, we are
likely to see some downward pressure on Polish swap rates in the
coming days as market participants could increase speculation
about further rate cuts," Danske Bank said in a note.
Stocks were also on a stronger footing, gaining around one
percent across the region. Markets were waiting for the German
ZEW confidence index and U.S. housing data later in the day to
better measure global risk appetite.
The zloty has firmed more than seven percent throughout the
summer and the forint has gained almost four percent. Dealers
say a correction for these currencies was still possible in the
near term.
The crown is seen rather stable in the short run as it is
regarded as a safe heaven within the region, while the leu, the
weakest central European currency compared to the start of the
year, is seen rangebound in illiquid trade.
"The correction could still continue," one Bucharest-based
dealer said. "The zloty and the forint come after ... large
summer gains so a 2-3 percent correction cannot be ruled out."
Trading was thin, especially in Hungary, where markets will
be closed on Thursday and Friday for a national holiday.
Hungary is due to make an interest rate decision on Aug 24.
It cut rates by a bigger-than-expected 100 basis points last
month and has signalled further significant easing for the rest
of the year to help the economy fight deep recession.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2009
Czech crown <EURCZK=> 25.65 25.689 +0.15% +4.3%
Polish zloty <EURPLN=> 4.17 4.181 +0.26% -1.32%
Hungarian forint <EURHUF=> 272.98 273.47 +0.18% -3.45%
Croatian kuna <EURHRK=> 7.295 7.297 +0.03% +0.96%
Romanian leu <EURRON=> 4.219 4.219 0% -4.85%
Serbian dinar <EURRSD=> 93.26 93.24 -0.02% -4.05%
All data taken from Reuters at 1030 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaux, writing by Marius Zaharia,
Editing by Jon Boyle)
