* Poland gears up for two-round presidential election
* FX edging up, fiscal developments still on the radar
* Czech president to name new c.bank governor at 1100 GMT
By Marius Zaharia
BUCHAREST, June 18 (Reuters) - The Polish zloty edged down on Friday ahead of a first round of presidential elections, lagging its central European peers after sentiment got a boost from Thursday's smooth bond auctions in Hungary and Spain.
Opinion polls tip Bronislaw Komorowski, of the governing Civic Platform party, to win the presidential contest that starts on Sunday, but his challenger Jaroslaw Kaczynski -- the twin brother of the president who died in a plane crash earlier this year -- has narrowed the gap.
The outcome will likely be decided during a July 4 runoff.
Markets would likely cheer a win by Komorowski, fearing Kaczynski could imperil reforms by using the president's right to veto, just as his brother did.
"We suppose markets have already priced in a scenario of close co-operation between the president and the government and we agree that this outcome seems slightly more likely at the moment," Citigroup said in a note.
"Therefore we believe any surprise and any signs of a delayed implementation of reforms would be negative for the zloty and for Polish bonds."
Analysts said any market impact will likely materialise after the second round, when any uncertainty regarding the outcome will disappear.
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At 0718 GMT, the zloty <EURPLN=> was 0.2 percent weaker on the day, while the Czech crown <EURCZK=> was 0.1 percent up and the Hungarian forint <EURHUF=> was 0.3 percent stronger.
Markets in the Czech Republic are awaiting an announcement from the presidency naming the new central bank governor at 1100 GMT. Analysts and media have said vice-governors Miroslav Singer and Mojmir Hampl are the most likely candidates. [
].Sentiment improved in the region after worries of contagion from euro zone debt woes were eased by a well covered auction in Spain, while regional fiscal concerns were also cooled by a smooth Hungarian tender. [
]But Romania sold less than it wanted on Thursday after the government narrowly escaped a no-confidence vote on Tuesday over a package of painful wage and pension cuts, needed to meet terms of its IMF/EU aid package. [
]Romania's leu <EURRON=> was 0.1 percent down in thin trade. --------------------------MARKET SNAPSHOT-------------------- Currency Latest Previous Local Local
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today in 2010 Czech crown <EURCZK=> 25.681 25.712 +0.12% +2.48% Polish zloty <EURPLN=> 4.077 4.069 -0.2% +0.66% Hungarian forint <EURHUF=> 279.35 280.11 +0.27% -3.22% Croatian kuna <EURHRK=> 7.201 7.203 +0.03% +1.5% Romanian leu <EURRON=> 4.238 4.235 -0.07% -0.01% Serbian dinar <EURRSD=> 103.523 103.44 -0.08% -7.38% *Benchmark is German bond equivalent. All data taken from Reuters at 1018 CET. Currency percent change calculated from the daily domestic close at 1600 GMT.
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