FX firms as global mood brightens
- The Polish zloty was 0.54% firmer against the euro at 4.5516, the Czech crown had strengthened 0.09% to 25.8210, while the Hungarian forint was 0.13% stronger at 358.70.
- "Over the next few days, the yields of 2-year bonds should remain around 0.05%, while the yields of 10-year bonds should remain close to 1.60%," PKO BP analysts said in a note.
Central European currencies gained on Thursday, as sentiment was buoyed by a series of positive signals for the global economy this week.
Buffeted by concerns over the COVID-19 pandemic and rising global bond yields, the region's currencies had a torrid time in March.
However, they have recovered since then helped by a consolidation in yields and a weaker US dollar, with recent global economic data on the labour market and the services sector giving a further boost.
"There is good sentiment around the world which is connected with the record high of the Dow Jones and S&P, with better-than-expected PMI for services here in Europe yesterday, but also with a series of good readings from the United States," said Mateusz Sutowicz, a financial market analyst at Bank Millennium.
PKO BP analysts said in a note the Polish zloty had been supported by a change in language concerning the currency in a central bank press release.
The central bank said the pace of Poland's recovery would depend on the zloty exchange rate, but removed a long-standing reference to the dangers of a lack of "visible and more durable" zloty adjustment to the pandemic and previous rate cuts.
At 1010 GMT, the Polish zloty was 0.54% firmer against the euro at 4.5516, the Czech crown had strengthened 0.09% to 25.8210, while the Hungarian forint was 0.13% stronger at 358.70.
Poland sold bonds worth a total of 5 billion zlotys in a tender on Thursday. Benchmark Polish 10-year yields were little changed at 1.564%
"Over the next few days, the yields of 2-year bonds should remain around 0.05%, while the yields of 10-year bonds should remain close to 1.60%," PKO BP analysts said in a note.
Czech 10-year yields fell 4.7 basis points to 1.897%.
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