fxstreet.com 01 Feb, 2021 09:30 am

Czechia and Serbia to release 4Q20 GDP growth

Czechia and Serbia to release 4Q20 GDP growth
Today, PMIs in manufacturing for January will be published in Czechia, Hungary and Poland. Despite the worsening of the pandemic in the euro area and

Besides the flash estimates of 4Q20 GDP growth for Czechia and Serbia, we will get December retail sales for Czechia, Hungary, Slovakia and Romania with the latter being the only one posting positive growth.FX market developments The EUR benefited from the better than expected 4Q20 GDP growth figures published last Friday for Germany and other major EA economies, as the EURUSD returned above 1.Solid FY20 GDP growth (released on Friday) supported the zloty, as the EURPLN moved toward 4.We expect the Czech central bank to deliver one 25bp hike in 4Q21, as the recent stronger than expected strengthening of the koruna already tightened monetary conditions.

In Hungary, the central bank hinted that they will shift their focus more to the mid part of the yield curve, as the QE has been approaching its per issue limit on longer maturities.HU: Central bank kept rates unchanged.

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