(Adds details, fixed income)
PRAGUE, Sept 3 (Reuters) - Emerging European currencies
slipped versus the euro on Wednesday after a small rally late on
Tuesday, with the firming dollar weighing on the euro-referenced
region, analysts said.
BPH bank in Warsaw said investors would watch euro zone data
due out later in the day -- second quarter GDP and July retail
sales -- for insight.
"Currency (trade) is likely to be determined by the moves on
EUR/USD due to lack of domestic macroeconomic data," they said
in a research note.
The dollar's gains against the euro in the past month have
hit the central European region as investors shift to the
greenback due to growth concerns in the euro zone. Persistent
tension over Georgia has also raised investors' wariness.
By 0808 GMT, Hungary's forint <EURHUF=> dipped 0.2 percent
to 238.8 per euro as turmoil over the country's budget
negotiations calmed. Dealers said the situation has had a
limited impact, but the currency will still test weaker levels.
"We've been moving in tandem with the zloty and some
overreaction is possible because of politics," a local dealer
said. "I expect it to test 240 in the coming days and if it
manages to break through, more weakness is likely."
On Tuesday, Prime Minister Ferenc Gyurcsany proposed talks
with the Free Democrats, which has pushed for the removal of the
minority Socialist government, to gain support for his proposed
300 billion forint ($1.82 billion) tax cuts.
(For details please double click on [])
Elsewhere, the Czech crown <EURCZK=> fell 0.7 percent to
24.849 per euro after a rally of nearly a percent at one point on
Tuesday, and Poland's zloty <EURPLN=> slipped 0.5 percent to
3.368.
Romania's leu <EURRON=> fell to 3.544 to the euro from
Tuesday's close of 3.522, while the Serb dinar <EURRSD=> added
0.1 percent to 76.4 per euro.
The Croatian kuna <EURHRK=> dipped 0.1 percent to 7.14,
although dealers saw firming this week as demand picks up in
connection to Hungarian MOL's bid for Croation oil group INA.
Bonds in the region were quiet, with investors waiting on
fresh auctions in Poland and the Czech Republic today.
========================Market Snapshot========================
Currency Latest Previous Local Local
close currency currency
change change
today in 2008
Czech crown <EURCZK=> 24.849 24.683 -0.67% +6.22%
Polish zloty <EURPLN=> 3.368 3.350 -0.54% +6.46%
Hungarian forint <EURHUF=> 238.820 238.320 -0.21% +5.55%
Croatian kuna <EURHRK=> 7.138 7.133 -0.07% +2.57%
Romanian leu <EURRON=> 3.544 3.522 -0.62% +1.01%
Serbian dinar <EURRSD=> 76.400 76.500 +0.13% +3.00%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
3-yr T-bond CZ3YT=RR +10 basis points to 8bps over bmk*
5-yr T-bond CZ5YT=RR -3 basis points to +19bps over bmk*
10-yr T-bond CZ9YT=RR -3 basis points to +43bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +4 basis points to +229bps over bmk*
5-yr T-bond PL5YT=RR +3 basis points to +213bps over bmk*
10-yr T-bond PL10YT=RR +1 basis points to +191bps over bmk*
Hungarian treasury bonds <0#HUBMK=>
3-yr T-bond HU3YT=RR +3 basis points to +502bps over bmk*
5-yr T-bond HU5YT=RR +3 basis points to +472bps over bmk*
10-yr T-bond HU10YT=RR +1 basis points to +386bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1008 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 David Stamp and Victoria Main)
