By Anita Komuves and Luiza Ilie
    BUDAPEST/BUCHAREST, Aug 18 (Reuters) - The Hungarian forint
extended its slide on Tuesday, while its regional peers held
stable, as GDP data last week showed the Hungarian economy was
hit harder by the COVID-19 pandemic than other CEE countries.
    The forint was down 0.37%, trading at 350.05
versus the euro at 0844 GMT, as the currency broke out of the
narrow range of 344-348 where it had been moving in the past few
weeks.
    "The second-quarter drop in GDP is really bad, worse than in
Poland or Slovakia, which could be the reason why some investors
re-evaluated their positions," an FX trader in Budapest said. 
    "According to the technical picture, I expect the forint to
weaken further."
    Hungary's GDP dropped by an annual 13.6% in the
second quarter, below analyst forecasts, data showed on Friday.
Poland's GDP fell 8.2% year-on-year and Slovakia's
economy shrunk by an annual 12.1%. 
    The Romanian leu was stable after Romania's
opposition Social Democrat Party filed a no-confidence vote
against the centrist minority government of Prime Minister
Ludovic Orban on Monday.
     The announcement is the latest sign of years of political
instability that have kept the currency under pressure. The leu
was trading 0.05% lower at 4.8355 to the euro on Tuesday. 
    "The announcement of another no-confidence vote after summer
holidays is another proof of political fragmentation which keeps
us relatively cautious on Romanian government bonds," Raiffeisen
said in a daily note. 
    Elsewhere, the Polish zloty and the Czech crown
 were little moved.
    Stocks in the region weakened, tracking European indices
that slid because of escalating U.S.-China tensions and a batch
of lackluster earnings results.
    Budapest's equities led losses by dropping 0.74% and
assets in Warsaw were down 0.52%. Prague's blue chip
index was down 0.42%, while Bucharest's stocks
eased 0.13%.
        
                    CEE       SNAPSHO   AT                      
                    MARKETS   T        1044 CET          
                              CURRENC                           
                              IES                        
                              Latest   Previous  Daily   Change
                              bid      close     change  in 2020
 EURCZK=  Czech     <EURCZK=  26.1550   26.1450  -0.04%   -2.76%
          crown     >                                    
 EURHUF=  Hungary   <EURHUF=  350.050  348.7500  -0.37%   -5.40%
          forint    >               0                    
 EURPLN=  Polish    <EURPLN=   4.3984    4.3988   +0.01   -3.23%
          zloty     >                                 %  
 EURRON=  Romanian  <EURRON=   4.8355    4.8330  -0.05%   -0.98%
          leu       >                                    
 EURHRK=  Croatian  <EURHRK=   7.5267    7.5283   +0.02   -1.08%
          kuna      >                                 %  
 EURRSD=  Serbian   <EURRSD=  117.480  117.5800   +0.09   +0.08%
          dinar     >               0                 %  
          Note:     calculated from              1800           
          daily                                  CET     
          change                                         
                                                                
                              Latest   Previous  Daily   Change
                                       close     change  in 2020
 .PX      Prague               907.20  911.0000  -0.42%  -18.68%
 .BUX     Budapest            36264.9  36533.57  -0.74%  -21.30%
                                    3                    
 .WIG20   Warsaw              1852.49   1862.12  -0.52%  -13.84%
 .BETI    Buchares            8700.08   8711.13  -0.13%  -12.80%
          t                                              
 .SBITOP  Ljubljan  <.SBITOP   858.20    862.52  -0.50%   -7.31%
          a         >                                    
 .CRBEX   Zagreb              1603.58   1597.67   +0.37  -20.51%
                                                      %  
 .BELEX1  Belgrade  <.BELEX1   666.81    668.99  -0.33%  -16.82%
 5                  5>                                   
 .SOFIX   Sofia                433.04    433.61  -0.13%  -23.78%
                                                                
                              Yield    Yield     Spread  Daily
                              (bid)    change    vs      change
                                                 Bund    in
          Czech                                          spread
          Republic                                       
 CZ2YT=R    2-year  <CZ2YT=R   0.0980    0.0080   +076b    +1bps
 R                  R>                               ps  
 CZ5YT=R    5-year  <CZ5YT=R   0.6560   -0.0310   +132b    -2bps
 R                  R>                               ps  
 CZ10YT=            <CZ10YT=   0.9770   -0.0180   +144b    -1bps
 RR       10-year   RR>                              ps  
          Poland                                                
 PL2YT=R    2-year  <PL2YT=R   0.1790   -0.0020   +084b    +0bps
 R                  R>                               ps  
 PL5YT=R    5-year  <PL5YT=R   0.7390   -0.0130   +140b    +0bps
 R                  R>                               ps  
 PL10YT=            <PL10YT=   1.3300   -0.0040   +179b    +1bps
 RR       10-year   RR>                              ps  
                    FORWARD                                     
                              3x6      6x9       9x12    3M
                                                         interba
                                                         nk
          Czech                  0.33      0.33    0.42     0.34
          Rep       <PRIBOR=                             
                    >                                    
          Hungary                0.76      0.81    0.86     0.60
                                                         
          Poland                 0.21      0.21    0.24     0.23
                                                         
          Note:     are for ask                                 
          FRA       prices                               
          quotes                                         
          *********************************************         
          *****************                              
 

 (Additional reporting by Robert Muller in Prague; Editing by
Amy Caren Daniel)
  
 
 

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