CEE MARKETS-FX retreat, Czech CPI below forecasts

                                
 BUDAPEST, Sept 9 (Reuters) - Central European currencies
eased slightly on Thursday as a fall in the euro, their
reference currency, and European shares signalled rising risk
aversion.
                                
 August Czech inflation published in the morning was below
expectations, easing fears that a rate rise was imminent and
pushing the crown down 0.1 percent against the euro.
[ID:nLDE68803W]
                                
 The regional market mood was much calmer than early on
Wednesday when Hungary's forint hit record lows against the
Swiss franc <CHFHUF=>, triggering concern about the huge amount
of franc loans held by Hungarian households.
                                
 The forint <EURHUF=> rallied late on Wednesday but by 0736
GMT on Thursday was down 0.2 percent versus the euro to 287.48,
tracking the changes in European risk sentiment.
                                
 The currency shrugged off the Hungarian government's pledge
on Wednesday to push the budget deficit below 3 percent of gross
domestic product (GDP) next year, although analysts said the
news could support local markets in the longer run if the
details confirm that Hungary is on course to reducing its high
state debt.
                                
 "The current unfavourable global market mood and the ...
cautious reaction of market participants to the government's 
communication are likely to limit positive impacts in the short
run, especially before the (Oct. 3) municipal elections," CIB
Bank said in its daily regional market note.
                                
 "If these announcements represent the end of confusing
fiscal communication (and when other uncertainties are also
cleared away, including the calculation of pension fund costs
and tensions in this year's budget), we expect significant
forint and government bond appreciation up until the end of
2010," CIB said.
                                
 Government bond auctions on Thursday will be a key test of
confidence in the new Hungarian policy. The results are due to
be published at 0930 GMT.
                                
 The Czech Republic reported that consumer prices dipped by
0.3 percent in August from July. The resulting 1.9 percent
annual inflation rate was a touch below forecasts.
                                
 The figures reduced expectations for an imminent interest
rate hike which had been fuelled by strong domestic consumption
data on Wednesday.
                                
 "I share the view that the Czech National Bank does not have
to rush debate on monetary tightening at its September meeting,"
said Radomir Jac, analyst of Generali PPF Asset management.
                                
 The crown <EURCZK=> shed 0.1 percent against the euro to
24.699, while the Romanian leu <EURRON=> was flat at 4.281 and
the Polish zloty <EURPLN=> eased 0.2 percent to 3.946.
                                
 "We expect the zloty to stay in a range of 3.93-3.97 against
the euro ... The most interesting thing today will be the data
from the U.S. labour market (during local afternoon trade),"
Bank BPH said in a morning note.
                                
 Central Europe's main stock indices were little changed by
0754 GMT, despite declines in major west European stock markets.
 -------------------------MARKET SNAPSHOT--------------------
 Currency                    Latest   Previous Local    Local
                                
                                   close    currency currency
                                
                                            change   change
                                
                                            today    in 2010 
 Czech crown      <EURCZK=>  24.689   24.675   -0.06%   +6.6%
 Polish zloty     <EURPLN=>   3.946    3.939   -0.18%   +4%
 Hungarian forint <EURHUF=> 287.48   286.9     -0.2%    -5.96%
 Croatian kuna    <EURHRK=>   7.287    7.286   -0.01%   +0.3%
 Romanian leu     <EURRON=>   4.281    4.282   +0.02%   -1.02%
 Serbian dinar    <EURRSD=> 105.04   105.08    +0.04%   -8.72%
                                
 Yield Spreads
 Czech treasury bonds <0#CZBMK=>
 2-yr T-bond   CZ2YT=RR   +7 basis points to  87bps over bmk*
 7-yr T-bond   CZ7YT=RR    -1 basis points to  +97bps over bmk*
 10-yr T-bond   CZ9YT=RR   +1 basis points to  +84bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 0936 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 Sandor Peto; Editing
by Susan Fenton)