The Hungarian forint firmed for a third straight day on Friday, after touching a record low this week, as central Europe's currencies edged up due to some hope Britain could still reach a deal to avoid a disorderly exit from the European Union. Markets also turned some attention to central bank meetings next week in Hungary and the Czech Republic, where rate setters are widely expected to hold firm with their monetary policy despite the European Central Bank (ECB) and US Federal Reserve reverting to easing.

A Reuters poll on Thursday showed analysts see Hungary's central bank keeping its base rate steady even through 2020, ignoring pressure on the forint, which has plumbed new lows. The forint strengthened 0.1% against the euro in early trade on Friday, bid at 332.39, off an all-time low of 334.35. Majority of analysts in the Reuters poll predicted the forint was unlikely to weaken to as far as 340 to the euro this weak.

Markets got some relief after European Commission President Jean-Claude Juncker said on Thursday a Brexit deal was still possible. Britain leaving without a deal in place at the end of October would hurt trading in Europe, having a large effect on central Europe's car sector-driven economies. The Polish zloty ticked up a touch to 4.342 to the euro, trying to snap a week-long losing streak, while Romanian leu also leaned firmer, gaining a touch to 4.746 and the Czech crown was steady at 25.90 to the euro.

Copyright Reuters, 2019