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09 August 2010
EMEA Daily
Review
• On Friday, Polish central bank (NBP) governor, Marek Belka, said that he does not
EMEA swap rates
expect the VAT hike to have a significant effect on inflation and that the strength of
the zloty and the stable labour-market situation have convinced him to take a more 2Y IRS Mid level 1D chg - bp
dovish stance on monetary policy. We share this view and see an increased chance CZK 1.69 3
that the NBP will keep rates on hold for the rest of the year. HUF 6.05 -6
• Czech Industrial production surprised on the downside on Friday as growth dropped PLN 4.70 2
RUB 5.47 2
to 9.7% y/y in June from 16.9% y/y in May – much lower than our forecast of 13.0%
TRY 7.57 -1
y/y. Retail sales surprised significantly on the upside as growth increased to 6.6% y/y
ZAR 6.53 0
in June from 3.1% y/y in May, while we had expected a retail sales drop in growth to
5Y IRS Mid level 1D chg - bp
1.0% y/y.
CZK 2.28 2
• The Russian trade balance surplus in H1 2010 was $93.9 billion, up 78% y/y. The HUF 6.41 -6
growth of the surplus slowed in Q2 from the previous quarter, but it nevertheless PLN 5.16 2
appears to have been the main GDP growth driver in Q2 along with consumption. RUB 6.67 -3
However, without a significant rise in the oil price, the trade balance will not be able TRY 8.08 0
to support GDP growth in H2 2010, as imports are increasing rapidly. Thus, the ZAR 7.30 -1
Russian economy is losing steam and desperately needs new sources of growth. Source: Reuters Ecowin
• Inflationary pressure in July eased somewhat in Estonia: CPI increased by 2.9% y/y –
down from 3.5% y/y in June. See our Flash Comment.
EMEA FX markets
Preview
ZAR vs. EUR
• Today, industrial production data for Turkey is due out. It should show that Turkish
TRY vs. EUR
industrial production growth has dropped to 9.6% y/y in June from 15.6% y/y in May. 1-day change
CZK vs. EUR
This will be yet another sign that Turkish economic growth might be starting to
Basket vs. RUB
decelerate.
PLN vs. EUR
• Czech inflation should pick up a bit to 1.9% y/y July from 1.2% y/y June and ZAR vs. USD
unemployment should rise slightly to 8.7% in July from 8.5% in June. HUF vs. EUR
RON vs. EUR
Trading Update
TRY vs. USD
• We are looking for another good week for the euro-sensitive EMEA currencies, CZK, EUR/USD
HUF and PLN, as EUR/USD should continue to move up.
-1.0 0.0 1.0
%
Calendar Data updated: 06/08 - CET: 15:00
Monday, August 9, 2010 Period Danske Bank Consensus Previous
Source: Reuters Ecowin
RUB - Disposable income y/y Jul 1.4%
RUB - Real wages y/y Jul 6.3% 6.2% 5.5%
LVL - Unemployment % Jul 15.6%
EEK 7:00 Trade balance B. Jun -1.2
CZK 9:00 CPI y/y Jul 1.9% 1.9% 1.2%
CZK 9:00 Unemployment rate % Jul 8.7% 8.5%
TRY 9:00 Industrial production y/y Jun 9.6% 10.5% 15.6%
Chief Analyst
LTL 10:00 CPI y/y Jul 1.9% 1.0%
Lars Christensen
LTL 10:00 Trade Balance B. LTL Jun -0.21
+45 4512 85 30
LVL 12:00 Trade balance M. Jun -75.5
larch@danskebank.dk
LVL 12:00 Gross domestic Product y/y 2nd quarter -3.7% -6.0%
LVL 12:00 CPI y/y Jul -0.9% -1.4%
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EMEA Daily
2| 09 August 2010
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EMEA Daily
Disclosure
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