* Poland gears up for two-round presidential election
* FX edging up, fiscal developments still on the radar
* Czech president to name new c.bank governor at 1100 GMT
By Marius Zaharia
BUCHAREST, June 18 (Reuters) - The Polish zloty edged down
on Friday ahead of a first round of presidential elections,
lagging its central European peers after sentiment got a boost
from Thursday's smooth bond auctions in Hungary and Spain.
Opinion polls tip Bronislaw Komorowski, of the governing
Civic Platform party, to win the presidential contest that
starts on Sunday, but his challenger Jaroslaw Kaczynski -- the
twin brother of the president who died in a plane crash earlier
this year -- has narrowed the gap.
The outcome will likely be decided during a July 4 runoff.
Markets would likely cheer a win by Komorowski, fearing
Kaczynski could imperil reforms by using the president's right
to veto, just as his brother did.
"We suppose markets have already priced in a scenario of
close co-operation between the president and the government and
we agree that this outcome seems slightly more likely at the
moment," Citigroup said in a note.
"Therefore we believe any surprise and any signs of a
delayed implementation of reforms would be negative for the
zloty and for Polish bonds."
Analysts said any market impact will likely materialise
after the second round, when any uncertainty regarding the
outcome will disappear.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
For a take-a-look on Polish election, see []
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
At 0718 GMT, the zloty <EURPLN=> was 0.2 percent weaker on
the day, while the Czech crown <EURCZK=> was 0.1 percent up and
the Hungarian forint <EURHUF=> was 0.3 percent stronger.
Markets in the Czech Republic are awaiting an announcement
from the presidency naming the new central bank governor at 1100
GMT. Analysts and media have said vice-governors Miroslav Singer
and Mojmir Hampl are the most likely candidates.
[].
Sentiment improved in the region after worries of contagion
from euro zone debt woes were eased by a well covered auction in
Spain, while regional fiscal concerns were also cooled by a
smooth Hungarian tender. []
But Romania sold less than it wanted on Thursday after the
government narrowly escaped a no-confidence vote on Tuesday over
a package of painful wage and pension cuts, needed to meet terms
of its IMF/EU aid package. []
Romania's leu <EURRON=> was 0.1 percent down in thin trade.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 25.681 25.712 +0.12% +2.48%
Polish zloty <EURPLN=> 4.077 4.069 -0.2% +0.66%
Hungarian forint <EURHUF=> 279.35 280.11 +0.27% -3.22%
Croatian kuna <EURHRK=> 7.201 7.203 +0.03% +1.5%
Romanian leu <EURRON=> 4.238 4.235 -0.07% -0.01%
Serbian dinar <EURRSD=> 103.523 103.44 -0.08% -7.38%
*Benchmark is German bond equivalent.
All data taken from Reuters at 1018 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 []
Spot FX rates Eastern Europe spot FX <EEFX=>
Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=>
Latin America spot FX <LATAMFX=>
Thomson Reuters Equity Emerging Markets Europe Index (Total
Return) <.TRXFLDEETU>
Other news and reports
World central bank news [] Economic Data Guide <ECONGUIDE>
Official rates [] Emerging Diary []
Top events [] Diaries [] Diaries Index []
(Reporting by Reuters bureaus, writing by Marius Zaharia
Editing by John Stonestreet)
