Central European currencies were little changed yesterday and the biggest move were on the EUR/HUF currency pair. Forint was not decided which way to go in the morning and fluctuate in the range of EUR/HUF 294.8 – 296.7. However, it moved south in the afternoon trading session and closed the day approximately 0.5% stronger. Moreover, it started to appreciate further this morning and went through the EUR/HUF 292.50 level. Forint is at the strongest level since January 21. (1 1250 CZK, 0,00%) Orban said yesterday that the government will likely not agree on the loan with IMF. It will issue new bonds on the international markets denominated in foreign currencies.
NBP governor Belka said in his speech in the Parliament that the bank would probably continue to easy its monetary policy. This strengthened the expectations of a rate cut at the beginning of February. This comment also helped to push zloty slightly above EUR/PLN 4.20. The Czech koruna was little changed. But the whole region started to appreciate gradually this morning. The most visible is the move on the trading with forint.