Week in FX Europe – Prices in Central Europe Are In Focus

Spare a thought for the CEE3 ensemble, otherwise know as the HUF, CZK or PLN next week. This Friday has seen many investors being steam rolled over by the magnitude and speed of the EUR, JPY and CHF moves. Next week, for a period at least, a different market pace is required when Central European inflation becomes a focus.

Analysts expect a tamer Polish, but a slightly faster Hungarian rate of inflation to catch most market participant’s attention.

Polish citizens could actually witness their inflation threat ease, as economic deceleration in the country remains. The markets are sure to blame the obvious reasons, falling food and fuel prices, a not so-hot job market and a suspect private consumption rate.

On the other hand, the Hungarians could be looking at an opposing rate of inflation scenario, a rate on the rise by year-end due to the ‘one-off’ pricing model. To the rest of the world we know it as taxes or tolls!

The Czechs producer price growth for last month expects to show annual growth, mostly on higher food prices, but the bigger picture reading is something just above that of Poland, as crude prices have fallen.

• EZ interest rates unchanged at +0.75%
• A look into German Exports and the Role of the Central Bank
• BoE Side-steps Further QE
• Greece unemployment highest in EU
• Ireland Close To Normalizing Global Funding
• German Economy Shows Signs Of Neglect
• Berlusconi teams up with former coalition partners
• IMF Agrees It Did Not Understand the Effects of Austerity
• Basel Agreement Boosts European Bank Shares
• 4 More Years – Banks given more flexibility by regulators

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