CEE MARKETS-Currencies ease as investors eye Hungary cenbank meeting and Powell’s testimony

By Anita Komuves BUDAPEST, Feb 23 (Reuters) – Central European currencieseased and shares have been blended on Tuesday as markets have been eyeing acentral financial institution assembly in Hungary and looking out ahead to U.S.Federal Reserve Chairman Jerome Powell’s testimony beforeCongress later within the day. Markets might be carefully watching Powell’s speech forcomments on the next inflation outlook and an increase in U.S.treasury yields that has pushed yields larger within the CEE regionas nicely. “Rising yields within the U.S. and the firming of the dollarthis morning maintain CEE currencies beneath stress,” an FX traderin Budapest stated. The Hungarian forint was buying and selling 0.14% weaker at359.54 to the euro, staying inside its latest tight vary aheadof the central financial institution assembly. A Reuters ballot of analysts expects the Nationwide Financial institution ofHungary (NBH) to go away charges unchanged after a latest increasein carefully watched inflation measures and continued volatilityin costs and monetary markets. Traders might be carefully watching the NBH’s evaluation of”two highly effective new developments”, a latest spike in coronavirusnumbers and an increase in bond yields and inflation, Commerzbankwrote. It stated the Czech crown may start feeling the impression ofthe pandemic in addition to the nation is among the many worst-hit bythe coronavirus amid a large third wave. The crown edged down 0.06% to commerce at 25.910 pereuro. Czech bonds have stayed beneath stress as the federal government’sborrowing goal grows this 12 months to finance a pandemic-hitbudget and in addition on expectations the central financial institution may beginraising rates of interest later this 12 months. For the primary time ever, the Czech 10-year yield has firmlyrisen above the Polish benchmark since January, with the spreadnow round 26 foundation factors. Elsewhere, the Polish zloty was 0.22% weaker at4.5075 per euro. Fee setter Kamil Zubelewicz stated that anincrease in unemployment may encourage the central financial institution to cutinterest charges and stated that he didn’t help fee cuts. Poland’s registered unemployment fee rose to six.5% inJanuary 2021 in comparison with 6.2% in December 2020. CEE SNAPSHO AT MARKETS T 1056 CET CURRENC IES Newest Earlier Day by day Change bid shut change in 2021 EURCZK= Czech EURHUF= Hungary Zero EURPLN= Polish EURRON= Romanian EURHRK= Croatian EURRSD= Serbian 0 % Notice: calculated from 1800 each day CET change Newest Earlier Day by day Change shut change in 2021 .PX Prague 1047.65 1042.640 +0.48 +2.00% 0 % .BUX Budapest 43092.1 43457.15 -0.84% +2.34% 8 .WIG20 Warsaw 1937.85 1961.62 -1.21% -2.33% .BETI Buchares 10270.9 10260.09 +0.11 +4.75% t 8 % .SBITOP Ljubljan <.SBITOP 953.94 953.52 +0.04 +5.89% a > % .CRBEX Zagreb 1835.57 1837.50 -0.11% +5.54% .BELEX1 Belgrade <.BELEX1 752.07 753.96 -0.25% +0.46% 5 5> .SOFIX Sofia 497.24 498.45 -0.24% +11.11 % Yield Yield Unfold Day by day (bid) change vs change Bund in Czech unfold Republic CZ2YT=R 2-year ps CZ5YT=R 5-year ps CZ10YT= ps Poland PL2YT=R 2-year ps PL5YT=R 5-year ps PL10YT= ps FORWARD 3×6 6×9 9×12 3M interba nk Czech 0.44 0.65 0.92 0.36 Rep Hungary 0.98 1.12 1.26 0.76 Poland 0.26 0.28 0.33 0.21 Notice: are for ask FRA costs quotes ********************************************* ***************** (Extra reporting by Jason Hovet in Prague; Modifying byGiles Elgood)