BUDAPEST, Jan 27 (Reuters) - Emerging European currencies
opened flat in thin trade on Thursday as a slow news day left
investors watching for signs of faster inflation in Poland and
anticipating details of Hungary's fiscal reform package due next
month.
"There's been a lot of idle time in the last few days. We
are watching the EUR/USD cross and any potential news on the
Hungarian reforms," a Budapest-based dealer said. "Without big
news we'll stay in recent ranges."
The Hungarian forint <EURHUF=> ticked 0.1 percent higher by
0813 GMT, the Polish zloty <EURPLN=> edged 0.1 percent lower,
with the Czech crown <EURCZK=> and the Romanian leu <EURRON=>
flat.
The crown has see-sawed in recent sessions, with corporates
using crown rallies to buy the euro, dealers said. That halted
the momentum of the crown, the region's safe haven and top
performer in 2010 and so far this year.
"This could be hint a lot of corporates don't see the crown
lower than 24.00, so it might be a good sign to buy dips (in
euro)," CSOB dealer David Sykora said.
Investors are watching for signs of higher inflation in
Poland as the economy probably grew by 3.7 percent in 2010, the
highest rate in the region, according to a Reuters poll. Polish
GDP data is due on Friday.
Retail sales surged by an annual 12 percent in December,
pointing to fast growth. []
The data indicates continued strong demand, UniCredit said
in a note to clients.
"We see MPC members watching the data carefully with a focus
on Jan/Feb inflation and PLN movement, with the next (rate) hike
coming in March at the earliest," Unicredit said.
Poland in January increased interest rates for the first
time after an 18-month hiatus to 3.75 percent from an all-time
low of 3.5 percent.
A Polish rate-setter on Wednesday said another hike in the
second quarter was very likely. []
"We are seeing inflationary expectations in Poland... edge
up to 3 percent for January," UniCredit added. "Another
acceleration of expectations on the VAT hike is likely to
provide further impetus to the price momentum."
Hungary sells government bonds later in the day, and dealers
expect the sale to go smoothly after a rally in the last few
days brought yields to multi-week lows.
"Yields continue to fall on the secondary market, which is
partly due to global optimism, partly the easing of the
underweight status attached to Hungarian assets of late,"
Cashline analyst Kornel Szabo Sarkadi said in a morning note.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2011
Czech crown <EURCZK=> 24.197 24.194 -0.01% +3.32%
Polish zloty <EURPLN=> 3.885 3.88 -0.13% +1.88%
Hungarian forint <EURHUF=> 274.4 274.75 +0.13% +1.3%
Croatian kuna <EURHRK=> 7.409 7.408 -0.01% -0.39%
Romanian leu <EURRON=> 4.264 4.264 0% -0.73%
Serbian dinar <EURRSD=> 104.09 104.51 +0.4% +1.76%
All data taken from Reuters at 0913 CET.
Currency percent change calculated from the daily domestic
close at 1700 GMT.
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(Reporting by Reuters bureaux, writing by Marton Dunai;
Editing by John Stonestreet)
