CEE MARKETS 2-FX trims losses after Ifo, rates still in focus

                                
 * CEE currencies trims losses after German Ifo
                                
 * Rate expectations in Hungary, Czech Republic in focus
                                
 * Polish MPC seen keeping rates on hold on Wednesday
                                
 
 (Adds fixed income, fresh quote)
                                
 WARSAW, Nov 24 (Reuters) - Emerging Europe's currencies
trimmed some previous losses on Tuesday after the euro firmed
versus the dollar on the back of better-than-expected German
business sentiment.
                                
 The Munich-based Ifo institute's business climate index,
based on a monthly poll of some 7,000 firms, rose to 93.9 this
month from 92.0 in October, its highest level since August 2008.
The increase was the eighth in a row and well above a consensus
forecast for a reading of 92.5.[ID:nGEE5AM2HY]
                                
 "It's definitely Ifo that strengthened the region. We just
followed the euro," said Marcin Bilbin, a dealer at Pekao bank
in Warsaw. "But we must remember that the market is very calm
today and currencies are moving in a range."
                                
 Expectations of further interest rate cuts still weighed on
Hungary's forint after the country's central bank trimmed rates
on Monday and signalled the possibility of a further loosening
in monetary policy. [ID:nGEE5AM1NC]
                                
 Similar expectations have also affected the crown <EURCZK=>
after the Czech central bank's deputy governor, Miroslav Singer,
said last week he would welcome a looser monetary policy,
although dealers say markets have gradually priced it out.
                                
 At 1000 GMT, the forint <EURHUF=> was 0.2 percent weaker to
the euro at 268.15, while the Czech crown <EURCZK=> was almost
unchanged versus the common currency.
                                
 In Poland the central bank's Monetary Policy Council (MPC)
is expected to leave rates unchanged at its monthly policy
meeting that ends on Wednesday. Interest rates are expected to
remain flat until at least mid-2010.
                                
 The Polish zloty <EURPLN=> and bonds were flat on Tuesday
ahead of a switch tender supply due to be published around 1100
GMT.
                                
 In Romania, the leu <EURRON=> was steady after the first
round of a presidential election on Sunday saw incumbent Traian
Basescu take a slim lead ahead of the second run, due on Dec. 6.
                                
 The close result pointed to tough talks ahead to build a new
government. Any failure to form a new coalition could further
endanger a 20-billion-euro aid package fronted by the
International Monetary Fund. [ID:nGEE5AM2IB]
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>  25.874   25.862   -0.05%   +3.4%
Polish zloty     <EURPLN=>   4.122    4.121   -0.02%   -0.17%
Hungarian forint <EURHUF=> 268.15   267.67    -0.18%   -1.72%
Croatian kuna    <EURHRK=>   7.31     7.31        0%   +0.75%
Romanian leu     <EURRON=>   4.269    4.27    +0.02%   -5.96%
Serbian dinar    <EURRSD=>  94.31    94.22     -0.1%   -5.12%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond   CZ3YT=RR   +1 basis points to  113bps over bmk*
7-yr T-bond   CZ7YT=RR   +1 basis points to  +112bps over bmk*
10-yr T-bond   CZ10YT=RR    0 basis points to  +95bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond   PL2YT=RR   +3 basis points to  +357bps over bmk*
5-yr T-bond   PL5YT=RR   +2 basis points to  +327bps over bmk*
10-yr T-bond PL10YT=RR   +1 basis points to  +290bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond   HU3YT=RR   +1 basis points to  +525bps over bmk*
5-yr T-bond   HU5YT=RR   +2 basis points to  +475bps over bmk*
10-yr T-bond   HU10YT=RR  0 basis points to  +414bps 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 1600 GMT.
                                
 
For related news and prices, click on the codes in brackets: All
emerging market news [EMRG] 
Spot FX rates Eastern Europe spot FX <EEFX=>    
Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=>       
Latin America spot FX <LATAMFX=> 
Other news and reports   
World central bank news [CEN]  Economic Data Guide <ECONGUIDE>
Official rates [GLOBAL/INT]  Emerging Diary [EMRG/DIARY]  
Top events [M/DIARY]  Diaries [DIARY] Diaries Index [IND/DIARY] 
 (Reporting by Reuters bureaus, Writing by Dagmara Leszkowicz,
editing by Patrick Graham)
 ((dagmara.leszkowicz@thomsonreuters.com, RM:
dagmara.leszkowicz.reuters.com@reuters.net, tel +48 22 653 9718))