* FX weaker despite strong industry data
* Budget deficit worries, seasonal rise in imports weigh
By Marius Zaharia
BUCHAREST, Oct 7 (Reuters) - Central European currencies
weakened slightly against the euro on Thursday as investors
ignored forecast-beating economic data across the region and
waited for new developments on the austerity front.
Hungary posted a higher-than-expected trade surplus and
Czech manufacturing output exceeded forecasts in August,
suggesting a continued economic recovery, but the forint and the
crown failed to react. [] []
The forint has firmed sharply in the last month as the
government promised budget deficit cuts for 2011, but the rally
lost some steam this week, as markets waited for the budget
details to be announced next week.
In Romania, a jump in the leu following court approval on
Wednesday of a key pension reform bill, vital to keep its
International Monetary Fund deal on track, proved short-lived as
investors turned their eyes on new risks to the government's
austerity drive.
Romania's industrial output also edged higher, tracking
regional peers, data showed on Thursday. []
"We are used to good industry and exports data," one dealer
in Bucharest said. "I'm not watching these sets of data, I'm
watching budget deficits, that's the most important thing."
At 0758 GMT, the leu <EURRON=> was 0.1 percent down on the
day, the Polish zloty <EURPLN=> and the crown <EURCZK=> were 0.2
weaker, while the forint <EURHUF=> led losses with a 0.4 percent
dip from Wednesday's close.
The trader said worries over large fiscal imbalances in the
region will not go away easily and pointed to Romania's 300
million lei debt auction later in the day, which is expected to
fall short as investors demand higher yields than the finance
ministry's 7 percent self-imposed ceiling.
Neighbouring Hungary is also holding a debt auction at 0930
GMT <HUISSUE>, but it is expected to be smoother as bond yields
trade near 4-5 month lows.
Another dealer also said a seasonal increase in energy and
retail imports is keeping corporate demand for euros high,
limiting currency gains.
The Czech Republic posted on Thursday a surprisingly sharp
30.1 percent year on year increase in imports in August, the
eighth consecutive rise.
The zloty and the crown have firmed 3.6 and 7.6 percent this
year respectively, but the forint and the leu -- economies with
weaker fundamentals -- are slightly weaker than late last year.
--------------------------MARKET SNAPSHOT--------------------
Currency Latest Previous Local Local
close currency currency
change change
today in 2010
Czech crown <EURCZK=> 24.455 24.405 -0.2% +7.62%
Polish zloty <EURPLN=> 3.963 3.957 -0.15% +3.56%
Hungarian forint <EURHUF=> 271.99 270.97 -0.38% -0.6%
Croatian kuna <EURHRK=> 7.315 7.315 0% -0.08%
Romanian leu <EURRON=> 4.271 4.265 -0.14% -0.79%
Serbian dinar <EURRSD=> 105.9 105.89 -0.01% -9.46%
All data taken from Reuters at 0858 CET.
Currency percent change calculated from the daily domestic
close at 1600 GMT.
Middle East spot FX <MEFX=> Asia spot FX <ASIAFX=>
Latin America spot FX <LATAMFX=>
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(Reporting by Reuters bureaus, Writing by Marius Zaharia;
Editing by Tim Pearce)
