* Currencies little changed, mkt awaits U.S. payroll data
* Polish long-dated bonds gain on solid data, fundamentals
* FX in region should gain further, Reuters poll shows
(Adds fixed income, detail)
WARSAW, Dec 3 (Reuters) - Central European currencies were
mixed on Friday with investors focused firmly on U.S. labour
market data due later in the day in the absence of planned
domestic releases.
Assets in the region have gained in the past days, supported
not only by improving global sentiment but also by a batch of
national data that boosted bets for a steady economic recovery
in most of emerging Europe's countries.
"The world has calmed for now and currencies have been
supported by solid domestic data in recent days," said Karol
Zaluski, chief FX dealer at ING bank.
"The U.S. payrolls data is due to be published today and
this will be a key driver for the forex market on Friday."
The Polish zloty <EURPLN=> was hit hard earlier this week,
weakening to almost 4.11 to the euro due to concerns over the
euro zone crisis. It has trimmed some of its previous losses and
is now trading a touch above its 200-day moving average.
"3.98 seems to be the key support level for the zloty now
and I do not expect the unit to breach it in the coming days,"
Zaluski said.
By 0947 GMT, the zloty was 0.3 percent weaker to the euro,
and Hungary's forint <EURHUF=> fell 0.5 percent. Romania's leu
<EURRON=> added some 0.1 percent.
In the Czech Republic, a finance ministry debt issuance plan
published on Thursday surprised the market on the upside as most
analysts had expected a bigger figure. []
The Czech crown <EURCZK=> was virtually flat against the
euro.
BONDS STRONGER
On the bonds market, the Polish 10-year papers were
stronger, with yields down some 6 basis points and dealers
attributed such a move to solid fundamentals backed by the
recent data publication.
Poland's economy grew by 4.2 percent on an annual basis in
the third quarter and analysts expect the country's economy to
expand by 3.4 percent in all 2010.
A Reuters poll showed on Thursday that economic recovery
should lift currencies in the European Union's eastern wing in
2011 but that the falls of the past few weeks could resume any
time if the euro zone debt crisis escalates. []
The zloty should lead gains with a rise of some 5.5 percent
over the next 12 months, the poll showed, while the forint is
expected to gain 2.5 percent, only partly offsetting a 3 percent
decline seen this year.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.975 24.964 -0.04% +5.38%
Polish zloty <EURPLN=> 3.997 3.984 -0.33% +2.68%
Hungarian forint <EURHUF=> 278.08 276.75 -0.48% -2.78%
Croatian kuna <EURHRK=> 7.395 7.405 +0.14% -1.16%
Romanian leu <EURRON=> 4.297 4.3 +0.07% -1.39%
Serbian dinar <EURRSD=> 107.29 107.35 +0.06% -10.63%
Yield Spreads
Czech treasury bonds <0#CZBMK=>
2-yr T-bond CZ2YT=RR +7 basis points to 104bps over bmk*
7-yr T-bond CZ7YT=RR 0 basis points to +84bps over bmk*
10-yr T-bond CZ9YT=RR +2 basis points to +98bps over bmk*
Polish treasury bonds <0#PLBMK=>
2-yr T-bond PL2YT=RR +2 basis points to +382bps over bmk*
5-yr T-bond PL5YT=RR -3 basis points to +356bps over bmk*
10-yr T-bond PL10YT=RR -8 basis points to +311bps over bmk*
*Benchmark is German bond equivalent.
All data taken from Reuters at 1047 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 []
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(Reporting by Reuters bureaus, Writing by Dagmara
Leszkowicz; editing by Patrick Graham)
