High PMI fails to support regional currencies
Political uncertainty weighs on the forint
Yesterday´s PMI figures confirmed capacity of CE countries to preserve growth despite German economic slowdown. The impact of this good news on regional currencies, however, was negligible. The CZK and the PLN have been under pressure due to forthcoming central bank meetings. A better than expected PMI supports expectations of the next base rate in Poland by 25 rather than 50 bps.
Read the full report: FX Daily