* GDP data across region fails to move currencies
* FX touch stronger on slight euro strengthening
* Markets await CPI data in Poland
(Adds fixed income, detail)
WARSAW, Feb 15 (Reuters) - Emerging European currencies
mostly shrugged off GDP data that showed the Czech and Hungarian
economies grew modestly in the fourth quarter while
recession-hit Romania contracted less than expected.
Market players say currencies got a slight boost from the
euro -- the units' main reference currency -- edging higher
against the dollar on Tuesday.
By 0925 GMT the forint <EURHUF=> was 0.5 percent stronger
against the euro, the Czech crown <EURCZK=> inched some 0.1
percent higher and Romania's leu <EURRON=> was virtually flat.
Hungary's economy expanded by two percent year-on-year in
the last three months of 2010, preliminary data showed, more
than the 1.7 percent increase forecast by analysts.
In the same period, the Czech economy expanded by 2.9
percent year-on-year, while Romania's economy shrank by 0.6
percent, much less than the forecast 1.5 percent.
[] [] []
"Growth (in Hungary) was overall a bit stronger at the end
of last year... The annual rate of expansion (in the fourth
quarter) accelerated to 2.0 percent, which is still below the
average of its regional peers, but the gap has been closing,"
said Gyorgy Barcza, an analyst at K&H Bank in Budapest.
CPI
On the bond market, Hungary's papers gained, with yields
falling some 2-10 basis points across the curve after
lower-than-expected inflation data cemented expectations that
the central bank will leave interest rates on hold.
"Lower-than-expected inflation may rearrange short-end
yields as interest rate hike expectations recede, which we can
probably observe at the 3-month T-bill auction later today,"
said one Budapest-based dealer.
Hungary's annual headline inflation slowed to 4 percent in
January from 4.7 percent in the previous month, the data showed.
The Polish zloty <EURPLN=> inched up 0.1 percent versus the
euro on Tuesday morning, while the EURPLN pair held around its
key resistance level of 3.94-3.95.
Poland's statistics office is due to release its inflation
data for January at 1300 GMT, with the market expecting the
figure to accelerate to 3.4 percent on an annual basis from 3.1
percent in December.
Dealers say any surprise on the upside could bring some
strengthening of the zloty. "Monetary policy in Poland is a key
driver now," said one.
Analysts expect the 10-strong Monetary Policy Council to
leave interest rates unchanged in March after delivering a rate
increase in January, the first since June 2008.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.275 24.307 +0.13% +2.99%
Polish zloty <EURPLN=> 3.935 3.947 +0.3% +0.58%
Hungarian forint <EURHUF=> 270.8 272.05 +0.46% +2.65%
Croatian kuna <EURHRK=> 7.41 7.41 0% -0.4%
Romanian leu <EURRON=> 4.244 4.245 +0.02% -0.26%
Serbian dinar <EURRSD=> 103.31 103.3 -0.01% +2.53%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +5 basis points to 35bps over bmk*
7-yr T-bond CZ7YT=RR -3 basis points to +72bps over bmk*
10-yr T-bond CZ9YT=RR +2 basis points to +80bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR 0 basis points to +357bps over bmk*
5-yr T-bond PL5YT=RR -2 basis points to +329bps over bmk*
10-yr T-bond PL10YT=RR -3 basis points to +293bps over bmk*
The P
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -12 basis points to +512bps over bmk*
5-yr T-bond HU5YT=RR -4 basis points to +475bps over bmk*
10-yr T-bond HU10YT=RR -7 basis points to +414bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1025 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, Writing by Dagmara Leszkowicz;
Editing by Catherine Evans)
