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UPDATE 1-CEE MARKETS-FX, stocks weaken on higher-than-expected U.S.


(Updates with market reaction to U.S. CPI data) By Anita Komuves BUDAPEST, Feb 10 (Reuters) – Central European currencies and stocks weakened on Thursday, pressured by a stronger dollar after January U.S. inflation data came in higher than analyst forecasts, pointing to the need for aggressive policy tightening by the Federal Reserve. Currencies in the region weakened after the U.S. CPI data was published, with the Hungarian forint leading losses as it shed 0.6% on the day to trade at 355.05 per euro, its lowest level in nearly a week. “The U.S. inflation data led to a risk-off mood in the entire CEE region,” an FX trader in Budapest said. “The forint was stuck in a tight range in recent days, that’s why it is the most volatile now among its peers.” U.S. consumer prices rose by an annual 7.5% in January, the biggest annual increase in inflation in 40 years, which could fuel financial markets speculation for a 50 basis points interest rate hike from the Federal Reserve next month. Investors were also awaiting January Hungarian CPI data to be published on Friday. Economists polled by Reuters expect headline inflation to remain unchanged at a 14-year-high of 7.4% for the third successive month. The Polish zloty eased 0.13% to 4.5 per euro, giving up some gains from the previous session when it firmed to its strongest in seven months on hawkish messages from central bank Governor Adam Glapinski after the bank raised its main interest rate by 50 basis points to 2.75%. “Compared to three months ago, NBP’s language sounds more committed hawkish, with no immediate caveats … the FX market is now reassured by the unambiguous tightening bias, which supports the currency,” Commerzbank wrote in a note. Elsewhere, the Czech crown was down 0.12%, trading at 24.370 per euro while the Romanian leu slid 0.06%. Stocks were mixed, with Warsaw weakening 1.16% and Budapest easing 0.91%. Prague lost 0.44 while Bucharest was 0.46% higher. CEE SNAPSH AT MARKETS OT 1533 CET CURREN CIES Latest Previo Daily Change us bid close change in 2022 EURCZK Czech 0 0 % EURHUF Hungary 00 00 % EURPLN Polish % EURRON Romania % EURHRK Croatia % EURRSD Serbian 00 00 % % Note: calculated from 1800 daily CET change Latest Previo Daily Change us close change in 2022 .PX Prague 1475.2 1481.6 -0.44% N/A 1 800 .BUX Budapes 52448. 52930. -0.91% +3.41 t 86 30 % .WIG20 Warsaw <.WIG20 2210.0 2235.9 -1.16% -2.51% > 7 3 .BETI Buchare 13459. 13397. +0.46 +3.05 st 32 25 % % .SBITO Ljublja <.SBITO 1281.5 1281.4 +0.00 +2.07 P na P> 1 9 % % .CRBEX Zagreb <.CRBEX 2166.8 2162.7 +0.19 +4.21 > 2 0 % % .BELEX Belgrad <.BELEX 860.95 858.82 +0.25 +4.89 15 e 15> % % .SOFIX Sofia <.SOFIX 624.60 629.29 -0.75% -1.74% > Yield Yield Spread Daily (bid) change vs change Bund in Czech spread Republi c CZ2YT= ps s CZ5YT= ps CZ10YT ps Poland PL2YT= 0 ps PL5YT= ps PL10YT ps FORWARD 3×6 6×9 9×12 3M interb ank Czech Hungary Poland Note: are for ask FRA prices quotes **************************************** ********************** (Additional reporting by Pawel Florkiweicz in Warsaw; Editing by Emelia Sithole-Matarise, Alexandra Hudson)


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