Currencies have their benefits, Romanian tariff decisions
The European currency depends on the profits of the previous session on Friday amid an increase in hope for a breakthrough to end the war in Ukraine, while investors look forward to interest rate decisions in Romania.
Kremlin said on Thursday that Vladimir Putin and Donald Trump would meet in the coming days, increase the expectation of the potential for peace agreement in Ukraine and increase the assets of Central Europe.
On Friday, investors looked forward to the interest rate decisions in Romania scheduled for 1,200 GMT. Analysts estimate that the remaining credit costs are at 6.50%, and Leu Eurron is widely stable versus Euro at 5,0749.
“The market will focus on comments on fiscal consolidation and potential impacts on inflation,” Ing said in a note.
The Romanian government, which has raised the value of added tax and excise this month, needs to control the largest budget deficit of the European Union if you want to maintain the investment level credit rating. But coalition partners are divided from potentially unpopular deduction of expenses.
“If the steps are proven to be insufficient, we can see the return of pressure on Ron,” said Ing.
The Czech Eurczk crown is 0.14% stronger at 24,426 after tightening 0.4% in the previous session. On Thursday the Czech National Bank left its main interest rate stable at 3.50% for the second consecutive meeting, said inflationary pressure had not allowed further easing.
“The Czech crown … respect further yesterday after the Hawkish language of the National Bank Czech (CNB),” commerzbank said in a note.
“(Governor Ales) Michl reiterated that all options remain open – However, we do not think that many market participants anticipate interest rates. But the time frame for unchanged interest rates will be extended.”
Forint Eurhuf Hungary strengthens 0.21% to 395.80.
“Ukraine-Russia’s headlines are clearly positive news for Hungary, which so far remains the most dependent on the import of Russian energy among central and eastern European countries,” Ing said in a note.
Trump has threatened new sanctions from Friday against Russia and countries that bought exports unless Putin agreed to end the conflict 3-1/2 years.
Source: Reuters
