BUDAPEST, Sept 17 (Reuters) -

The forint retreated slightly on Tuesday and other central

European currencies were also little changed, with a weaker

dollar lending some support ahead of the U.S. interest rate

decision.

The U.S. Federal Reserve's decision on Wednesday could

provide cues for the central banks in the region, as central

European rate setters assess how much more room they have to

ease policy as inflation subsides while an economic recovery

sputters.

Markets are increasingly expecting an oversized

50-basis-point rate cut by the Fed this week, weakening the

dollar and boosting risk appetite.

The Hungarian forint was down 0.1% against the

euro at 394.50 in slow morning trade, holding onto gains posted

in the past four sessions.

"In Monday's session the forint briefly firmed past 394 but

closed trading in the 394-395 range and that's where it is

trading now," brokerage Equilor said in a note.

The Fed's decision could have implications for the Hungarian

National Bank, which holds a policy decision meeting next week,

and which paused its rate cuts in August.

Czech National Bank board member Jan Kubicek told Reuters on

Monday that he favours another quarter-point rate cut this month

given soft economic data, a slightly firmer currency,

near-target inflation and lower wage growth.

The Czech central bank slowed the pace of easing to 25 bps

in August, from previous 50-bp steps, bringing the main repo

rate down to 4.50%.

In Poland, the zloty also slipped 0.1% to 4.28

per euro.

"The financial markets are waiting for the outcome of the

two-day Fed meeting starting today. Market participants remain

divided on the scale of a possible interest rate cut in the

U.S., with a move of 50 basis points currently considered more

likely," Bank Millennium said in a report.

"The EUR/PLN exchange rate is stabilizing around 4.28, which

is what we have become accustomed to in recent weeks."

CEE SNAPSHOT AT

MARKETS 0915

CET

CURRENCIES

Latest Previo Daily Change

us

trade close change in 2024

Czech 0

Hungary 00

Polish Romania Serbian 00

Note: calculated from 1800 CET

daily

change

Latest Previo Daily Change

us

close change in 2024

Prague 1575.28 1576.5 -0.08% +11.40

100 %

Budapes 72908.30 72750. +0.22% +20.27

t 50 %

Warsaw 6

Buchare 17554.26 17532. +0.13% +14.20

st 29 %

Spread Daily

vs Bund change

in

Czech spread

Republi

c

0

Poland

0

0

FORWARD RATE

AGREEMENTS

3x6 6x9 9x12 3M

interba

nk

Czech Hungary Poland Note: are for ask prices

FRA

quotes

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