* Crown leads gains, moves near key resistance level
* Leu stays subdued with cbank worries
* Trade quiet as wary investors eye U.S. data
PRAGUE, Aug 17 (Reuters) - Central European currencies were
mostly flat on Tuesday, with investors taking stock of the
potential impact on the region of a faltering global recovery as
the Czech crown rose towards a key resistance level against the
euro.
Stock markets edged higher, led by gains of up to 1 percent
in Budapest <> and Prague <> that supported local
currencies.
Most central European economies posted better than expected
second quarter GDP readings at the end of last week, but
analysts say the pace of recovery is set to slow as consumer
demand remains sluggish and governments cut budgets.
Emerging Europe's export-driven economies would also be hurt
by a slowdown in western economies, which increasing numbers of
investors are starting to anticipate, and on Tuesday most eyes
were turned to U.S. production and housing data due out in the
afternoon.
The Czech crown <EURCZK=> edged up, mainly on local demand,
gaining 0.2 percent to bid around the 24.800 level that has
triggered euro selling in the past month.
"If I were to bet, I would say it will break through 24.800
and then go somewhere around 24.700," a Prague dealer said. "The
foreign players are not doing much... they are holding their
positions now because there is no panic. Everybody believes that
in the long term it will be around 24.500."
The crown -- backed by fiscal tightening plans from the new
centre-right government that investors and ratings agencies have
welcomed -- has been a top performer in the region this year. It
has gained more than 6 percent, which is twice the pace of the
Polish zloty's appreciation.
The zloty <EURPLN=> inched up 0.1 percent by 0739 GMT along
with the Hungarian forint <EURHUF=>. Romania's leu <EURRON=> was
stuck around 4.23 to the euro.
Bucharest dealers said interest in trading euro/leu remained
subdued, given concerns about central bank interventions that
market players say have occurred regularly in both directions
since the global crisis broke in late 2008.
Traders expect the leu to remain stuck in a 4.2-4.3 per euro
range as long as the government keeps an International Monetary
Fund aid deal on track.
"I expect the leu to trade within 4.22-4.24 per euro in the
medium term," one trader in Bucharest said. "A 4.17/4.18 level
is not untouchable, but there is huge support at that level."
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.809 24.85 +0.17% +6.08%
Polish zloty <EURPLN=> 3.972 3.975 +0.08% +3.32%
Hungarian forint <EURHUF=> 279.1 279.3 +0.07% -3.14%
Croatian kuna <EURHRK=> 7.24 7.24 0% +0.96%
Romanian leu <EURRON=> 4.23 4.232 +0.05% +0.17%
Serbian dinar <EURRSD=> 104.51 104.42 -0.09% -8.26%
All data taken from Reuters at 0940 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet;
Editing by John Stonestreet)
