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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