* Forint, leu lead mild gains, economic data eyed
* Crown sticks around 21-month highs, space to firm
* Romania central bank report eyed
By Jason Hovet
PRAGUE, Aug 6 (Reuters) - The Romanian leu and Hungarian
forint led cautious gains in central Europe on Friday, with
investors assessing recovery strength in the region before
important U.S. payroll data later in the day.
Dealers said investors took local data in their stride.
Hungary posted a stronger-than-expected trade surplus for June
on the back of a 23.2 percent annual rise in exports.
[]
Higher imports in the Czech Republic caused a lower June
trade surplus, but analysts said export growth was still strong.
[]
Central Europe is highly dependent on trade to the richer
euro zone, but on Friday investors were focussed on whether weak
U.S. jobless claims figures released earlier this week meant the
payroll data would heighten worries about the world's largest
economy.
"It is quiet right now, and there was no surprise in Czech
figures today," a Prague dealer said. "The U.S. data is still a
big question in the market."
The forint <EURHUF=> rose 0.3 percent versus the euro along
with the leu <EURRON=>. The Polish zloty <EURPLN=> edged up a
touch to 3.983 per euro.
The Czech crown <EURCZK=> held around 21-month highs at 24.7
per euro a day after a central bank rate meeting held interest
rates steady and delivered milder comments than market players
had expected given the rapid appreciation of the crown this
summer.
Governor Miroslav Singer said it was "no big drama" if the
crown, whose strength has helped curb inflation, stayed around
where it is now. But he added further appreciation at this pace
could change the inflation outlook and the bank may have to
react. []
LEVELS WATCHED
The crown has been a top performer among central European
currencies this year, and has gained 4 percent since July thanks
to better risk appetite globally, improving economic data and
strong pledges by a new government to cut the budget.
Dealers said the central bank comments opened space for more
firming, and that resistance to weakening was found around the
24.800 level, where euro selling orders were placed.
"A break stronger is a question of days," the Prague dealer
said. "We cold get to 24.500 (per euro) but that would be a
level with strong buy (euro) interest."
The Polish zloty held below the psychologically-important
4.0 per euro level for a second straight session. It has not
consistently held below this mark since April.
Romanian markets were watching for central bank Governor
Mugur Isarescu to present the quarterly inflation report,
looking for monetary policy direction after the bank kept its
benchmark rate unchanged at 6.25 percent this week.
Markets had been unfazed by Romania's finance ministry
refusing again to pay yields above 7 percent at a sale of 3-year
treasury bonds on Thursday, rejecting all bids for the fourth
consecutive time. []
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.7 24.711 +0.04% +6.55%
Polish zloty <EURPLN=> 3.984 3.985 +0.03% +3.01%
Hungarian forint <EURHUF=> 278.8 279.6 +0.29% -3.03%
Croatian kuna <EURHRK=> 7.223 7.216 -0.1% +1.19%
Romanian leu <EURRON=> 4.239 4.253 +0.33% -0.04%
Serbian dinar <EURRSD=> 105.89 105.82 -0.07% -9.45%
All data taken from Reuters at 0955 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 Ruth Pitchford)
