The Central European currencies were trading within a narrow range yesterday. First, good news about a possible agreement in Greece cheered markets, but this reversed quickly in the afternoon after the agreement looked to be a bit further away on new demand from the EU.
The final deadline for the negotiations its the redemption of a large Greek bond stock on March 20, which could potentially push the country into bankrupcy, while this is several weeks away, hence we may have to prepare for heated negotiations in the run-up.
In the CEE region both the CZK and the HUF returned above their respective key levels of 25.00 and 290.00, but the weakening trend did not last long either. Hungary was questioned in the EU Parliament on media law changes, which may mean that the upcoming negotiations with the EU/IMF team may not be silk-smooth, but so far there is no reason to expect that the government will not agree on the bailout terms.