 Central European currenciesrose on Wednesday, with the zloty bucking the trend after thePolish central bank signaled it preferred a weaker currency tosupport economic recovery. Stocks were looking for direction as markets were reactingto a rising number of new coronavirus cases in China and theUnited States. Polands central bank on Tuesday left its benchmark rateunchanged at 0.1, as expected. Poland unexpectedly cut interestrates to almost zero in May to support the economy. The bank also signaled it would have preferred the zloty tobe weaker to support the economy, which weakened the Polishunit. The pace of the economic recovery could also be mitigatedby the lack of visible zloty exchange rate adjustment to theglobal pandemic shock and to the monetary policy easingintroduced by NBP, the central banks statement said. EURPLN rose sharply on the remarks in the MPC statementregarding the zloty, Santander Bank said in a note. It is hard to guess whether the zloty remark in thestatement was just a one-off or shows a change in the NBPsreaction function. The zloty was flat, trading at 4.44 to the euro onWednesday, while other currencies firmed. The Czech crown gained 0.23. The Czech central banks vice governor, Marek Mora, toldReuters on Tuesday the central bank has done enough via rapidrate cuts and now could keep policy on hold through the summer. The central bank has slashed its main rate by 200 basispoints in three moves since March. The Hungarian forint gained 0.56 and was tradingat 343.65 to the euro. The forint has been firming both versus the euro and thedollar, but long-term bond yields have slowly climbed back sincethe NBH stopped its QE, an FX trader in Budapest said. The central bank started its bond buying program in earlyMay with the aim of bringing long-term yields down. On Tuesday, for the third time in a row, the bank said thatthis week it would not buy any bonds at an auction.. There is no drama, we are still not back at the levelswhere we were before the QE was announced, and yields are notjumping ten to thirty basis points a day like they did inMarch, an FI trader said in Budapest. According to the Eikon page of the Hungarian Debt ManagementAgency, yields on the 10-year bond was 2.25 and itwas 2.75 on the 15-year bond. CEE MARKETS SNAPSHOT AT 1007 CET CURRENCIE S Latest Previous Daily Change bid close change in 2020 Czech 26.5600 26.6210 0.23 -4.25 crown Hungary 343.6500 345.5900 0.56 -3.64 forint Polish 4.4444 4.4455 0.02 -4.23 zloty Romanian 4.8325 4.8380 0.11 -0.91 leu Croatian 7.5430 7.5473 0.06 -1.29 kuna Serbian 117.5200 117.5500 0.03 0.04 dinar Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2020 Prague 942.50 946.3500 -0.41 -15.52 Budapest 38080.86 38060.73 0.05 -17.36 Warsaw 1799.37 1798.00 0.08 -16.31 Buchares 8705.55 8719.25 -0.16 -12.75 t Ljubljan 862.09 862.10 -0.00 -6.89 a Zagreb 1655.93 1653.04 0.17 -17.92 Belgrade 676.03 676.26 -0.03 -15.67 Sofia 457.61 457.53 0.02 -19.45 BONDS Yield Yield Spread Daily bid change vs Bund change in Czech spread Republic 2-year 0.1190 -0.0300 077bp -4bps s 5-year 0.4870 0.0670 111bp 5bps s 0.9720 0.0850 138bp 7bps 10-year s Poland 2-year 0.2710 0.0010 092bp 0bps s 5-year 0.8850 0.0060 151bp -1bps s 1.4260 0.0360 183bp 2bps 10-year s FORWARD RATE AGREEMENT 3x6 6x9 9x12 3M interbank Czech Hungary Poland Note: are for ask prices FRA quotes Additional reporting by Alan Charlish in Warsaw; Editing by Krishna Chandra Eluri 