CEE MARKETS – Rising COVID-19 cases hurt optimism ahead of ECB meeting

March 11 (Reuters) – Central European currencies were mostly little changed on Thursday as concerns over rising COVID-19 case numbers offset optimism that the European Central Bank will send warning signals. easing on market borrowing costs. Poland reported 21,045 new daily coronavirus cases on Thursday, according to health ministry data, the highest tally since November, pointing to an increase in infections. The Polish zloty weakened 0.07% to 4.5793 by 10:15 GMT, changing course after strengthening earlier in the session. “I think this information we had that there were around 21,000 new COVID cases today influenced the zloty,” said a Warsaw-based forex trader. The Czech koruna, which had also been firmer at the start of the session, weakened 0.02% to 26.2450. The Hungarian forint strengthened 0.27% to 366.20. CEE currencies have been under pressure since fears of a spike in inflation grew, pushing up US Treasury yields and strengthening the dollar. However, weaker consumer price data in the United States on Wednesday helped soften yields and investors were looking to the European Central Bank for further reassurance that it would act to contain the costs of loan. “If we hear a message from the ECB that it will buy more European debt, that will lead to lower yields and that should also lead to stronger CEE currencies,” said Mateusz Sutowicz, financial markets analyst at the Bank. Millennium in Warsaw. The ECB was due to announce its decision at 12:45 GMT with a press conference scheduled for 13:30 GMT. The Prague and Budapest stock exchanges rose by 0.50% and 0.57% respectively. Warsaw’s WIG 20 was 0.62% lower. Bartosz Kulesza, an analyst at BM Pekao in Warsaw, said the WIG 20 had reached a technical resistance level and was cooling after recent strong gains. In Prague, shares of CEZ hit their highest level since Jan. 18 as growing signs the state will take over 100% financing for an expansion of the Dukovany nuclear power plant, encouraging investors. CEE MARKET OVERVIEW T 1115 CET CURRENC IES Last Previous Daily Change 2021 Supply Closing Change EURCZK= Czech 26.2450 26.2400 -0.02% -0.06% Krona EURHUF= Hungary 366.200 367 .2000 +0.27 -0.95% forint 0% EURPLN= Polish 4.5793 -0.577% -0.44% zloty EURRON= Romanian 4.8850 4.8885 +0.07 -0.41% leu % EURHRK = Croatian 7.5860 7.5885 +0.03 -0.51 % kuna % EURRSD = Serbian 117.520 117.5600 +0.03 +0.04 % dinar 0 % change Last previous daily change in 2021 .PX Prague 1076.19 1070.860 +0.50 +4.78% 0% .BUX Budapest 43828.4 43579.39 +0.57 +4.09% 7% .WIG20 Warsaw 1991.16 2003.55 -0.62% +0.36% .BETI Buchares 1 +9.16% t 8% .SBITOP Ljubljan 984.08 987, 44 -0.34% +9.24% a .CRBEX Zagreb 1857.59 1862.70 -0.27% +6.80% .BELEX1 Belgrade 746.72 748.03 -0.18% -0.25% 5 .SOFIX Sofia + 497.037% % Yield Yield Spread Daily variation (bid) vs Bund variation in the Czech Republic spread CZ2YT=R 2 years 0.5210 -0.1880 +120b -19bps R ps CZ5YT=R 5 years 1.39 30 -0.0440 +201b -4bps R ps CZ10YT= ps Poland PL2YT=R 2 years 0.0330 -0.0620 +071b -6bps R ps PL5YT=R 5 years 0.8260 -0.0610 +144b -6bps R ps PL10YT = ps FORWARD 3×6 6×9 9×12 3M interba nk Czech

Hungary Poland Note: are for asking prices. Quotes ENG ***************************************** ****** * ************** (Reporting by Alan Charlish and Anna Wlodarczak-Semczuk in Warsaw, Jason Hovet in Prague and Anita Komuves in Budapest Editing by Mark Heinrich)

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