WARSAW, June 26 (Reuters) - Central Europe's currencies
slipped on Wednesday, led lower by the Czech crown a day ahead
of the Czech central bank decision on interest rates, as a
firming dollar and risk-off sentiment weigh on them.
    A higher U.S. interest rate environment, with more hawkish
comments from the Federal Reserve officials on Tuesday, supports
the dollar, pressuring emerging market assets.
    "EUR/USD has reverted back to 1.070 after some signs of
relief for CEE. Moreover, sentiment also dropped and turned a
bit more risk-off again, making it complicated for the region,"
ING analysts wrote in a note, adding they saw few local
positives in the coming days.
    The Czech crown traded 0.3% lower against the euro at
24.8880, hovering off the previous week's lows, to which it
pulled back from a five month high hit in early June.
    Investors are looking towards Thursday's rate decision at
which it could be a close call between whether the bank
maintains or slows its rate-cutting pace.
    "Clearly 25bp or 50bp (cut) is on the table. The main
variable here seems to be EUR/CZK given that the rest of the
picture has been a given for some time," ING analysts wrote.
    "The dynamics of CZK depreciation over the past week show
the market's sensitivity to the decision itself and reduce the
chances of a 50bp rate cut tomorrow in our view. On the other
hand, the strengthening CZK may in turn reassure the board and
clearly increases the chance of a 50bp move."
    The Hungarian forint eased 0.1% to 396.15 per
euro, trading within its range of the past two weeks to which it
slipped from a nearly four-month high hit in late May.
    "The strengthening of the dollar was not good for the
forint, it reversed the (forint's) strengthening seen on
Monday," MBH Bank wrote in a note.
    The Polish zloty meanwhile was flat at 4.3015 per
euro.
    "The zloty has seen several days of correcting losses
suffered after the European Parliament elections," Alior Bank
analysts wrote in a note.
    "Yesterday, the first signals appeared that the dynamic
phase of correction is already behind us and with the dollar
rebounding, we can observe an attempt to stabilize EUR-PLN
around 4.30."     

    
    
           CEE      SNAPSHOT     AT                          
           MARKETS              1146                 
                                CET                  
                    CURRENCIES                               
                    Latest      Previou  Daily       Change
                                s                    
                    trade       close    change      in 2024
 Czech                                             
 Hungary                            0              
 Polish                                            
 Romanian                                          
 Serbian                            0              
 Note:     calculated from               1800 CET            
 daily                                               
 change                                              
                                                             
                    Latest      Previou  Daily       Change
                                s                    
                                close    change      in 2024
 Prague                1541.44  1540.60      +0.05%    +9.01%
                                     00              
 Budapest             70856.95  70647.0      +0.30%   +16.89%
                                      4              
 Warsaw    <.WIG20     2564.57  2547.21      +0.68%    +9.46%
           >                                         
 Buchares             18319.56  18271.2      +0.26%   +19.18%
 t                                    7              
                                                             
                                         Spread      Daily
                                         vs Bund     change
                                                     in
 Czech                                               spread
 Republic                                            
   2-year                                         
   5-year                                         
                                                 
 Poland                                                      
   2-year                                         
   5-year                                         
                                                 
                                                             
           FORWARD RATE                                      
           AGREEMENTS                                
                    3x6         6x9      9x12        3M
                                                     interban
                                                     k
 Czech                                            
 Hungary                                           
 Poland                                            
 Note:     are for ask prices                                
 FRA                                                 
 quotes                                              
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 (Reporting by Karol Badohal in Warsaw, Jason Hovet in Prague
and Boldizsar Gyori in Budapest; Editing by Alison Williams)