CEE MARKETS-FX steadies after US election volatility

          WARSAW, Nov 8 (Reuters) - Emerging Europe's currencies
levelled out on Friday, holding on to most of Thursday's gains,
against the backdrop of a U.S. Federal Reserve rate cut and the
dollar pulling back slightly after a surge following Donald
Trump's presidential election victory.
    The U.S. dollar, which had eased in the previous session as
traders closed out profitable Trump-trade bets, was on track to
end a volatile week with a slight gain, as markets weighed the
impact of Trump's return to the White House and what that means
for the U.S. economy and its interest rate outlook.
    On Thursday, the Fed cut interest rates by a quarter of a
percentage point as its policymakers began taking stock of what
could become a more complex economic landscape when
President-elect Donald Trump takes office next year.
    In Poland, projections published on Friday by the central
bank showed inflation peaking in the first quarter of 2025,
assuming Poland's government removes a cap on household energy
prices in 2025, before returning to the central bank's target
range in early 2026.
    On Thursday, National Bank of Poland (NBP) governor Adam
Glapinski reiterated that rate-setters, who extended their pause
in November, could start discussing policy easing in March if
inflation peaks and the next NBP projection shows its steady
return towards target.
    By 0945 GMT, the Polish zloty slipped 0.1% to the
euro, trading at 4.3210, after cutting its losses since late
October ahead of the U.S. presidential election during trading
on Thursday.
    "Yesterday's post-election correction was probably a one-off
and the market will need new impulses to deepen Thursday's
movements. As a result, we expect EURPLN to trade in the range
of 4.31-4.33," Poland's state-owned development bank BGK wrote
in a note.
    In Hungary the forint eased 0.2% against the euro
to 405.50, calming down after wild swings earlier this week
following Trump's election victory.
    It is unlikely to strengthen beyond the key 400 per euro
level, and is seen trading in a range of 403-407 versus the euro
over the coming week, a Budapest-based trader said, adding that
the Fed's rate cut was priced in already in Thursday's session.
    "If the ECB also cuts rates that can also help us, and I do
not expect the Hungarian central bank to cut interest rates at
its next meeting, which could also be a forint-positive."
    The trader said any U.S. tariffs on European imports would
be negative for the forint, but announcements on any such moves
were unlikely before Trump's inauguration in January.
    Romania's central bank is widely expected to hold its
benchmark interest rate at 6.50% on Friday at its last meeting
of the year and ahead of parliamentary and presidential
elections.
    The National Bank of Romania, which targets inflation at
1.5%-3.5%, will release new forecasts for 2024 and 2025 on
Monday.
    Policymakers have said they expected inflation to be higher
than previously forecast and two board members have urged
caution last month, driven by a pending fiscal consolidation
plan.
    The Romanian leu held steady against the euro at
4.9759, within the narrow corridor it has remained in since
early September.
    Elsewhere, the Czech crown firmed 0.2% to 25.2350
per euro, extending gains after returning to late-October levels
a day earlier.
    The Czech National Bank (CNB) extended its year-long
monetary easing campaign on Thursday as expected with a
25-basis-point interest rate cut, but cautioned about further
steps due to inflation pressures.

            CEE        SNAPSHOT   AT
            MARKETS              1045 CET
                       CURRENCI
                       ES
                       Latest    Previous  Daily     Change
                       trade     close     change    in 2024
 Czech                  25.2350   25.2735    +0.15%    -2.11%
 crown
 Hungary               405.5000  404.7500    -0.18%    -5.50%
 forint
 Polish                  4.3210    4.3152    -0.14%    +0.54%
 zloty
 Romanian                4.9759    4.9763    +0.01%    -0.03%
 leu
 Serbian               116.9300  116.9800    +0.04%    +0.27%
 dinar
 Note:      calculated from                1800 CET
 daily
 change

                       Latest    Previous  Daily     Change
                                 close     change    in 2024
 Prague                 1667.25  1672.730    -0.33%   +17.91%
                                        0
 Budapest              76577.37  76478.67    +0.13%   +26.32%
 Warsaw                 2310.88   2310.43    +0.02%    -1.37%
 Bucharest             17386.64  17347.27    +0.23%   +13.11%

                                           Spread    Daily
                                           vs Bund   change
                                                     in
 Czech                                               spread
 Republic
   2-year   5-year   10-year  Poland
   2-year   5-year   10-year  FORWARD
                       3x6       6x9       9x12      3M
                                                     interban
                                                     k
 Czech Rep          Hungary            Poland             Note: FRA  are for ask prices
 quotes
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 (Reporting by Karol Badohal in Warsaw, Luiza Ilie in Bucharest
and Gergely Szakacs in Budapest. Editing by Jane Merriman)