Beruflich Dokumente
Kultur Dokumente
21 July 2010
EMEA Daily
Review
There has not been much news out over the past 24 hours. The market focus
EMEA swap rates
remains on the Hungarian situation and here everything is the same. The Hungarian
government is trying to calm international investors by saying that everything will be 2Y IRS Mid level 1D chg - bp
fine and the budget target agreed by the previous government with the EU/IMF will CZK 1.68 1
be achieved, while at the same time the Hungarian media reports that Prime Minister HUF 6.35 7
Orban has told parliamentarians from his Fidesz party that there will be no austerity PLN 4.66 4
measures. This kind of double-talk certainly is not good for investor confidence in RUB 5.43 -2
Hungarian government policies. TRY 7.47 -4
ZAR 6.53 -6
Yesterday, the prime Ministers of the Visegrad countries – Poland, Hungary, the 5Y IRS Mid level 1D chg - bp
Czech Republic and Slovakia – met in Budapest. The comments from the CZK 2.27 1
respective prime ministers were interesting. While on the surface they appeared to HUF 6.61 6
agree on fiscal stabilisation, it was apparent that the prime ministers of Poland, the PLN 5.19 1
Czech Republic and Slovakia were clearer on this issue than the Hungarian prime RUB 6.76 1
minister Orban. TRY 8.01 -8
ZAR 7.37 -7
Preview
Source: Reuters Ecowin
There is a very light agenda today. Consequently, the focus will remain on the
Hungarian situation and the development in global market sentiment.
EMEA FX markets
Trading update
On Friday we recommended to buy CZK/ZAR based on our EMEA FX Scorecard. RON vs. EUR
We continue to see value in this trade. It is especially notable that the CZK is EUR/USD
1-day change
basically untouched by the sharp sell-off in the forint on Friday. We believe this is a PLN vs. EUR
real sign of strength and we remain bullish on the outlook for CZK. On the other HUF vs. EUR
hand, we also remain bearish on the South African rand. We especially believe that a TRY vs. USD
sell-off in the rand could accelerate if the EUR/USD breaks decisively above 130. CZK vs. EUR
Yesterday we published a comment on our updated EMEA FX Scorecard. See here. Basket vs. RUB
TRY vs. EUR
ZAR vs. USD
ZAR vs. EUR
Calendar
Wednesday, July 21, 2010 Period Danske Bank Consensus Previous
LVL 12:00 Producer prices y/y Jun
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