Zloty eases slightly as Polish retail sales growth slows

* Polish retail sales slow in March on Easter effect
* Zloty, forint ease slightly, euro remains under pressure
* Bond yields track Bunds higher

By Sandor Peto and Alan Charlish
BUDAPEST/WARSAW, April 23 (Reuters) - Central Europe's main
currencies eased slightly on Tuesday as retail sales growth in
Poland slowed more than expected in March.
The region's most liquid units, the zloty and the
forint, each fell 0.1 percent by 0852 GMT.
They did not follow a strengthening of the rouble driven by
a rise in crude prices.
The region's economies are oil importers, and are linked to
the euro which remains under pressure after last week's
weak euro zone purchasing managers' index figures.
Poland's annual retail sales growth slowed more than
expected to 3.1 percent in March.
A more than 20 percent surge in spending on durable goods,
however, indicated that consumer demand remained robust,
analysts said.
"Shops were closed on 4 out of 5 Sundays in the month and
secondly ... Easter was later this year than last year, shifting
increased purchases into April," said Monika Kurtek, Chief
Economist if Bank Pocztowy, explaining the March slowdown.
The zloty, trading at 4.2879 versus the euro, was still
firmer than its 200- and 90-day moving averages at 4.297.
The forint traded at 320.7, staying near the 320
line where it has been hovering since late last month when the
Hungarian central bank gave up its earlier guidance of gradual
monetary tightening.
"I do not expect the bank to do anything at its meeting next
week," Raiffeisen analyst Zoltan Torok said.
While regional stocks mostly eased slightly, government
bonds tracked a rise in Bund yields.
Poland's 10-year yield rose 2 basis points to 2.893 from
April 18, the last session before the Easter holidays.
Moody's affirmed Poland's 'A2' rating and maintained a
stable outlook on Friday, saying it did not expect a planned
increase in public spending around Polish elections late this
year to worsen the outlook.
The agency could upgrade both Croatia and Slovenia in
reviews due on Friday as the two European Union members'
economic and fiscal performance is strong, Raiffeisen analyst
Gintaras Shlizhyus said in a note.
"In Croatia we remain on Hold due to tight Eurobond
valuations though, strategically speaking, Croatia can become
next EU-convergence play if its plan to file the ERM-2
application this year gets the EU support," he added.
The kuna firmed 0.1 percent versus the euro to

Latest Previous Daily Change
bid close change in 2019
Czech <EURCZK= 25.7240 25.7150 -0.03% -0.07%
crown >
Hungary <EURHUF= 320.7500 320.3900 -0.11% +0.10%
forint >
Polish <EURPLN= 4.2879 4.2838 -0.10% +0.04%
zloty >
Romanian <EURRON= 4.7575 4.7570 -0.01% -2.18%
leu >
Croatian <EURHRK= 7.4240 7.4305 +0.09% -0.19%
kuna >
Serbian <EURRSD= 117.8900 118.0100 +0.10% +0.35%
dinar >
Note: calculated from 1800 CET

Latest Previous Daily Change
close change in 2019
Prague 1098.17 1101.670 -0.32% +11.31%
Budapest 42726.74 42810.11 -0.19% +9.17%
Warsaw 2368.42 2365.36 +0.13% +4.03%
Bucharest 8383.03 8402.88 -0.24% +13.53%
Ljubljana <.SBITOP 880.20 879.35 +0.10% +9.44%
Zagreb 1820.86 1818.63 +0.12% +4.12%
Belgrade <.BELEX1 749.00 748.34 +0.09% -1.67%
Sofia 572.92 575.29 -0.41% -3.62%
Yield Yield Spread Daily
(bid) change vs Bund change
Czech spread
2-year <CZ2YT=R 1.7260 -0.1080 +231bps -12bps
5-year <CZ5YT=R 1.7180 0.0340 +210bps +2bps
10-year <CZ10YT= 1.8430 0.0020 +179bps -3bps
2-year <PL2YT=R 1.6200 -0.0850 +220bps -9bps
5-year <PL5YT=R 2.2300 0.0110 +261bps +0bps
10-year <PL10YT= 2.9110 0.0220 +286bps -1bps
3x6 6x9 9x12 3M
Czech Rep 2.19 2.21 2.20 2.02
Hungary 0.32 0.45 0.64 0.16

Poland 1.75 1.76 1.77 1.72

Note: FRA are for ask prices

(Reporting by Sandor Peto
Editing by Andrew Heavens)

2019-04-23 12:10:44

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.