(Updates throughout, adds fixed income)
PRAGUE, Sept 4 (Reuters) - The Czech crown jumped after
trade data on Thursday showed the economy was holding up better
than expected, outperforming other regional currencies as
investors eyed moves in the euro against the dollar.
The crown <EURCZK=> rose 0.6 percent to 24.68 per euro by
0800 GMT, rising after data showed exports were still growing
along with a larger-than-expected July trade surplus.
The crown led gains in the region, with Hungary's forint
<EURHUF=> trading up 0.2 percent at 238.15 and Poland's zloty
<EURPLN=> dipping 0.1 percent to 3.36 to the euro.
Romania's leu <EURRON=> trimmed losses but was still 0.2
percent down at 3.541 per euro, while the Croatian kuna added
0.3 percent to 7.13 and the Serb dinar <EURRSD=> edged up a
touch to 76.78 from 76.9 versus the euro.
The crown got a lift from strong export data, although
analysts warned it still shows signs of a slowing economy.
"At first view the data is better than expected," said
Michal Brozka, analyst with Raiffeisenbank in Prague.
"On the other hand, if you look at the seasonally-adjusted
data, we have confirmation of a deterioration in exports."
Regional currencies have fallen back in the past month as
the dollar gained ground against the euro, the region's main
reference, amid signs of a broader than earlier expected
economic slowdown across Europe.
Dealers said Thursday trade may also take its cue from major
currency markets, with eyes on the European Central Bank --
expected to hold fire on interest rates on Thursday.
"We are retracing the euro move (in the region)... so
influence will continue to come from the euro/dollar," a Prague
trader said.
The euro zone is central Europe's largest export market, and
the dollar's rally against the euro has sent central European
currencies lower by 2 to 5 percent since the start of August.
In other trading, bonds in the region were quiet, with
investors watching the ECB for direction today.
"With the ECB and BoE (Bank of England) rate decisions
coming up, I doubt there's going to be too much action on the
market until the announcements are made," a Budapest trader
said.
----------------------MARKET SNAPSHOT-------------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 24.680 24.825 +0.58% +6.86%
Polish zloty <EURPLN=> 3.369 3.366 -0.09% +6.43%
Hungarian forint <EURHUF=> 238.150 238.590 +0.18% +5.81%
Croatian kuna <EURHRK=> 7.131 7.152 +0.29% +2.67%
Romanian leu <EURRON=> 3.541 3.535 -0.17% +1.09%
Serbian dinar <EURRSD=> 76.783 76.90 +0.15% +2.51%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR -1 basis points to -1bps over bmk*
5-yr T-bond CZ5YT=RR -6 basis points to +13bps over bmk*
10-yr T-bond CZ9YT=RR -5 basis points to +37bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR -5 basis points to +217bps over bmk*
5-yr T-bond PL5YT=RR -3 basis points to +206bps over bmk*
10-yr T-bond PL10YT=RR -3 basis points to +187bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR -4 basis points to +501bps over bmk*
5-yr T-bond HU5YT=RR -6 basis points to +466bps over bmk*
10-yr T-bond HU10YT=RR -5 basis points to +377bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1000 CET.
Currency percent change calculated from the daily domestic
close at 1500 GMT.
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(Reporting by Reuters bureaus, writing by Jason Hovet, editing
by Patrick Graham)
