CEE MARKETS-Crown firmer before likely Czech rate cut as FX rebound

          PRAGUE, Nov 7 (Reuters) - The crown firmed before a
likely eighth straight interest rate cut from the Czech central
bank on Thursday as central Europeancurrencies rebounded from
losses coming after Donald Trump's U.S. presidential election
victory.
    Hungary's forint recovered from its lowest levels in almost
two years, with a weaker dollar providing some room to gain.
Global markets, including in central Europe, were eyeing a U.S.
Federal Reserve rate meeting while still digesting the policy
implications of a Trump presidency.
    In the Czech Republic, markets were positioned for a
continued rate-cutting cycle as the large majority of analysts
forecast a 25-basis-point reduction later on Thursday.
    The bank has cut by a combined 275 basis points since last
December, and analysts expect more cuts next year. Policymakers
have said easing could continue but with caution.
    "The question is how significantly (the central bank) will
rewrite (its update economic) forecast in a dovish direction and
how the board will also continue to accentuate several
pro-inflationary risks (like) high services inflation and a
weaker crown," bank CSOB said.
    The crown was up 0.1% at 25.297 to the euro at
0941 GMT, back at levels seen before Wednesday when it fell to
25.450.
    Among more-volatile peers, Hungary's forint gained
0.5% in morning trade to trade at 407.70 per euro, off a low of
412.50. Poland's zloty rose 0.25% to 4.344 per euro
after falling to 4.377, its lowest since June, in the previous
session.
    Analysts expect central European currencies will continue to
face pressure in the coming period as markets look to what
policies that Trump, who made tariffs and tax cuts key elements
of his pitch to voters, will put in place and who will fill out
his team.
    "With the eurozone generally under pressure, the threat of
tariffs and a stronger dollar cannot miss the CEE region and we
expect pressure on FX to resume," ING said.
    It said the zloty could outperform peers, though, "due to a
reversal in short positioning, Poland's lower export and lower
automotive share, its stronger economy and the National Bank of
Poland still waiting on the sidelines with rate cuts."
    Markets will watch Polish central bank Governor Adam
Glapinski later on Thursday when he gives no clues about the
bank's outlook after it left rates on hold on Wednesday, like it
has done since two initial cuts toward the end of 2023.
    "Financial markets are settling into the reality of the new
U.S. president," Warsaw-based Bank Millennium said. "In our
opinion, investors may currently be moving into the 'buy rumors,
sell facts' phase, i.e. attempts to reverse current trends."

          CEE      SNAPSHOT     AT
          MARKETS              1041
                               CET
                   CURRENCIES
                   Latest      Previo  Daily       Change
                               us
                   trade       close   change      in 2024
 Czech    0
 Hungary  00
 Polish   Romania  Serbian  00
 Note:    calcula                      1800 CET
 daily    ted
 change   from

                   Latest      Previo  Daily       Change
                               us
                               close   change      in 2024
 Prague               1673.17  1665.4      +0.46%   +18.33
                                  300                    %
 Budapes             76415.80  75906.      +0.67%   +26.06
 t                                 74                    %
 Warsaw   4
 Buchare             17314.22  17281.      +0.19%   +12.64
 st                                07                    %

                                       Spread      Daily
                                       vs Bund     change
                                                   in
 Czech                                             spread
 Republi
 c
          0
          0
          0
 Poland
          0
          0
          0

          FORWARD RATE
          AGREEMENTS
                   3x6         6x9     9x12        3M
                                                   interba
                                                   nk
 Czech    Hungary  Poland   Note:    are for
 FRA      ask
 quotes   prices
 ****************************
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 (Reporting by Jason Hovet in Prague, Editing by Angus MacSwan)