CEE MARKETS 3-FX move little though Czech cbank cuts rates

                                
 (Adds Czech rate cut, comments, new prices.)
                                
 By Sandor Peto and Jason Hovet
                                
 BUDAPEST/PRAGUE, Feb 5 (Reuters) - Central European
currencies moved little on Thursday after heavy swings earlier
this week, with the crown holding steady after the Czech central
bank cut interest rates by 50 basis points to 1.75 percent.
                                
 The measure followed a rate cut in Romania on Wednesday and
a string of rate reductions in the region in the past months as
inflation eases and central banks seek to help their
export-heavy economies weather the global crisis.
                                
 The Romanian leu firmed and the rate cuts, which had been
expected, had no immediate impact on the region's currencies,
but monetary easing has been weighing on the units which will
continue to feel the impact in the next months, analysts said.
                                
 "The lower rate is negative for the crown in general, but at
this moment it is not a surprise and the possible negative
influence should be very small," said Michal Brozka, analysts at
Raiffeisenbank in Prague.
                                
 The crown<EURCZK=> eased 0.05 percent against the euro after
the rate cut by 1133 GMT, to 28.28, but it was firmer than
28.398 before the rate decision when some investors closed
positions in anticipation of a bigger cut, dealers said.
[ID:nL5536584]
                                
 The Romanian leu<EURRON=> firmed 0.4 percent to 4.285 after
Wednesday's central bank measure, the first cut in 19 months.
                                
 The region's currencies often firmed in the past months
after rate cuts which can help mitigate economic growth
problems, but at times of rising risk aversion the currencies
have continued to weaken.
                                
 Before the Czech rate cut, Czech data showed a worse than
expected trade deficit in December, which analysts said will
weigh on the crown. [ID:nL5137664]
  "The (Czech trade) number ... confirms the (poor) situation
for exporters, which has already been shown in the drop in
foreign orders," said David Navratil, an economist with Ceska
Sporitelna bank.
                                
 Hungary's forint <EURHUF=> rose 0.25 percent to 295.75 to
the euro by 1133 GMT, well off a record low of 304 hit on
Wednesday, while the Polish zloty was flat at 4.651 per euro,
but still near 4-1/2 year lows.
                                
 Steep manufacturing drops are signalling a rough landing for
the region's export-reliant economies, which has spooked
investors into accelerating an outflow of funds.
                                
 Investors will also watch the European Central Bank, which
is expected to announce at 1245 GMT that it will keep rates on
hold this month. [ID:nL5577863] <ECON> The Bank of England cut
its benchmark rate to 1.0 percent on Thursday, as expected.
                                
 "The BoE rate decision, the ECB rate meeting and U.S. data
may well define the course for the region's currencies," a
Budapest trader said.
                                
 On bond markets, Czech yields ticked up, while Polish bonds
were steady.
                                
 Hungary's Government Debt Agency (AKK) is expected to decide
on Thursday whether to hold a government bond auction in mid
February. The AKK suspended regular bond tenders in October when
the local market froze up due to a lack of demand.
 ----------------------MARKET SNAPSHOT-------------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>   28.28    28.265   -0.05%    -5.4%
Polish zloty     <EURPLN=>   4.651    4.651   0%    -11.52%
Hungarian forint <EURHUF=>   295.75    296.5  +0.25%    -10.89%
Croatian kuna    <EURHRK=>   7.398    7.405  +0.09%    -0.45%
Romanian leu     <EURRON=>   4.285    4.302  +0.4%    -6.32%
Serbian dinar    <EURRSD=>   92.69    92.737  +0.05%    -3.46%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond   CZ2YT=RR   +6 basis points to  117bps over bmk*
4-yr T-bond   CZ4YT=RR   +9 basis points to  +125bps over bmk*
8-yr T-bond   CZ8YT=RR   +6 basis points to  +118bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR    -2 basis points to  +344bps over bmk*
5-yr T-bond   PL5YT=RR    -4 basis points to  +262bps over bmk*
10-yr T-bond PL10YT=RR    -2 basis points to  +205bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +5 basis points to  +802bps over bmk*
5-yr T-bond   HU5YT=RR   +7 basis points to  +734bps over bmk*
10-yr T-bond   HU10YT=RR +13 basis points to  +552bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1233 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/Sandor
Peto; Editing by Ruth Pitchford)