CEE MARKETS-CEE currencies gain, shielded by euro

By Radu-Sorin Marinas BUCHAREST, Nov 2 (Reuters) - Central European currencies recovered on Friday after a one-day Nov. 1 market break, with expectations the euro would in coming months lending them some support. The euro is expected to strengthen and eventually to rise over 2 percent to $1.16 in three months, according to a Reuters poll. However, 80 percent of the strategists polled said risks to predictions were skewed to the downside. Central and eastern European economies are deeply integrated with the euro zone. By 1050 GMT, the Polish Zloty, the Romanian leu and the Czech crown had all risen by 0.1 percent. Hungary remained closed on Friday for a public holiday. Ceska Sporitelna/Erste analysts said the Czech central bank still believes the crown's wandering around unusually weak levels will end within a couple of months. The Czech economy is robust, but recent rate hikes have failed to boost the currency. Market sentiment has turned gloomy for currencies in emerging markets, for a host of reasons. Czech bond yields edged up after the central bank said it was cutting its forecast for the 2018 state fiscal surplus to 1.5 percent of gross domestic product from an earlier estimate of 1.6 percent. CEE SNAPSHOT AT 1200 MARKETS CET CURRENCIE S Latest Previous Daily Change bid close change in 2018 Czech 25.8100 25.8330 +0.09% -1.04% crown Hungary 321.9300 322.6000 +0.18% -3.42% forint Polish 4.3240 4.3280 +0.09% -3.41% zloty Romania 4.6621 4.6630 +0.02% +0.38% n leu Croatia 7.4350 7.4345 -0.01% -0.06% n kuna Serbian 118.2100 118.2000 -0.01% +0.25% dinar Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2018 Prague 1069.36 1070.5900 -0.11% -0.82% Budapes 37155.21 37155.21 +0.00% -5.64% t Warsaw 2192.82 2151.88 +1.90% -10.90% Buchare 8544.43 8560.18 -0.18% +10.20% st Ljublja 813.55 794.89 +2.35% +0.89% na Zagreb 1776.87 1779.13 -0.13% -3.58% Belgrad 739.85 740.42 -0.08% -2.63% e Sofia 595.87 596.58 -0.12% -12.04% BONDS Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republi c 1.5920 0.0400 +223bp +2bps 2-year s 1.8530 0.0050 +202bp -2bps 5-year s <CZ10YT=RR 2.1510 0.0340 +172bp +0bps 10-year > s Poland 1.5930 0.0370 +223bp +2bps 2-year s 2.4670 -0.0050 +263bp -3bps 5-year s <PL10YT=RR 3.2030 -0.0040 +278bp -4bps 10-year > s FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M interbank Czech <P 2.05 2.20 2.35 1.82 Rep RIBOR=> Hungary <B 0.32 0.61 0.96 0.16 UBOR=> Poland <W 1.76 1.82 1.88 1.72 IBOR=> Note: are for ask prices FRA quotes *************************************************** *********** (Editing by Larry King)

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