CEE MARKETS 1-FX on stand-by before Czech cbank, Romanian vote

                                
 * Czech rates seen flat, easing cycle to end
                                
 * Romanian no-confidence vote against govt seen failing
                                
 
                                
 By Marius Zaharia
                                
 BUCHAREST, Sept 24 (Reuters) - Central European currencies
were rangebound early on Thursday, with investors eyeing a Czech
central bank rate meeting and a no-confidence vote against
Romania's centre-left coalition later in the day.
                                
 The Czech central bank (CNB) is expected to hold rates flat
on Thursday after trimming borrowing costs by a total of 250
basis points to a record low of 1.25 percent. [ID:nLI164883] 
                                
 "We assume that the rate low has been reached, while rate
rises are unlikely this year," Commerzbank said in a note.
                                
 "First of all inflation has been low recently, while the
economic recovery still seems fragile. In particular the recent
appreciation of the crown against the euro makes a rate rise in
the foreseeable future unlikely."
                                
 In Romania, markets were watching for a no-confidence vote
against the nine-month-old government. [ID:nLG43853]  
                                
 There have been rifts within the ruling coalition ahead of a
presidential election on Nov. 22 but the likelihood of a split
subsided significantly after the leftist partners pledged to
stay in government.
                                
 "Nobody in the market is pricing in a government collapse,
however everybody is waiting for the vote result so volumes are
very low," one dealer in Bucharest said.
                                
 At 0704 GMT, the Czech crown <EURCZK=> was flat from the
previous close, while the Polish zloty <EURPLN=>, the Hungarian
forint <EURHUF=> and the Romanian leu <EURRON=> were 0.1 percent
stronger.
                                
 The leu outperformed its peers this week after the
International Monetary Fund approved a second tranche of its
loan late on Monday.
                                
 Some dealers speculated the central bank also intervened
this week to prop up the leu, sending a signal it was ready to
use IMF cash to defend the stability of the currency.
                                
 The zloty has been the underperformer this week, depressed
by expectations of a big corporate dividend payout.
                                
 In Czech Republic, the parliament looked set to pass
austerity measures aimed at cutting next year's budget deficit
[ID:nLN583432]. The crown had risen after an agreement within
parties was reached on Wednesday.
                                
 Markets were also watching for central bank minutes in
Poland and debt auctions in Hungary <HUISSUE>.
--------------------------MARKET SNAPSHOT--------------------
Currency                    Latest   Previous Local    Local
                                
                                  close    currency currency
                                
                                           change   change
                                
                                           today    in 2009 
Czech crown      <EURCZK=>  25.146   25.152  +0.02%   +6.39%
Polish zloty     <EURPLN=>   4.178    4.183  +0.12%   -1.51%
Hungarian forint <EURHUF=> 270.85   271.08   +0.08%   -2.7%
Croatian kuna    <EURHRK=>   7.262    7.263  +0.01%   +1.42%
Romanian leu     <EURRON=>   4.223    4.226  +0.07%   -4.94%
Serbian dinar    <EURRSD=>  93.157   93.077  -0.09%   -3.95%
All data taken from Reuters at 0904 CET.
Currency percent change calculated from the daily domestic 
close at 1600 GMT.
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 (Reporting by Reuters bureaus, writing by Marius Zaharia;
Editing by Ruth Pitchford)