CEE MARKETS-FX slightly weaker as markets eye rates

WARSAW, June 12 (Reuters) - Central European Currencies were a touch softer on Monday, as markets looked ahead to rate setting meetings at the European Central Bank and in the United States this week that will set up meetings in Hungary and the Czech Republic next week. Czech data on Monday showed inflation easing less than expected in May, which did not derail most expectations that interest rates will not rise at the bank's June meeting. This week, analysts polled by Reuters expect the U.S. Federal Reserve to leave rates on hold for the first time in well over a year at its June 13-14 meeting, while the ECB is seen hiking its key interest rates by 25 basis points on June 15 and again in July before pausing for the rest of the year. However, in Hungary the central bank cut its key one-day deposit rate by 100 basis points to 17% in May and flagged further possible "gradual" cuts as inflation slows, with markets expecting further easing on June 20. "The market is gearing up for next Tuesday's Hungarian Central Bank rate decision meeting, with another 100 basis points cut in the effective interest rate expected," said Zoltan Varga, an analyst at brokerage Equilor. However, a Budapest-based trader said the expected interest rate cut was unlikely to have a big effect on the forint. "There may be some ups and downs, but the interest rate differential is still so brutally high that this (cut) will not be a game-changer," the trader said. At 0840 GMT the Hungarian forint was 0.22% weaker at 368.60. The Czech crown was 0.07% weaker at 23.7090. Headline inflation in the Czech Republic eased to a rate of 11.1% year-on-year in May, from 12.7% in April, statistics office data showed on Monday, falling for a fourth straight month but less than expected. "Today's figures show inflation is falling in the Czech Republic but pressures are remaining broad and robust," Raiffeisen said. "The data should not bring an argument for a possible rate hike." The Polish zloty hovered around the 2-1/2 year highs it hit on Friday, and was 0.06% weaker on the day at 4.4415. "The scale of the zloty strengthening, exceeding 5% against the euro and 4% against the dollar in the last 2 months, is quite surprising even after taking into account strong local fundamentals... and moderately positive global investment sentiment," PKO BP analysts said in a note. CEE SNAPSHOT AT MARKETS 1040 CET CURRENCI ES Latest Previous Daily Change bid close change in 2023 EURCZK= Czech 23.7090 23.6920 -0.07% +1.89% crown EURHUF= Hungar 368.6000 367.8000 -0.22% +8.37% y forint EURPLN= Polish 4.4415 4.4390 -0.06% +5.58% zloty EURRON= Romani 4.9550 4.9541 -0.02% -0.25% an leu EURRSD= Serbia 117.2000 117.3000 +0.09 +0.09% n % dinar Note: calculated from 1800 daily CET change Latest Previous Daily Change close change in 2023 .PX Prague 1315.57 1308.120 +0.57 +9.47% 0 % .BUX Budape 49616.81 49320.70 +0.60 +13.30% st % .WIG20 Warsaw 2050.54 2050.99 -0.02% +14.43% .BETI Buchar 12258.41 12251.01 +0.06 +5.10% est % Spread Daily vs change Bund in Czech spread Republ ic CZ2YT=R ps CZ5YT=R ps CZ10YT= ps r Poland PL2YT=R ps PL5YT=R ps PL10YT= ps r FORWARD 3x6 6x9 9x12 3M interban k Czech < 7.05 6.47 5.57 7.15 Rep PRIBOR=> Hungar < 13.80 12.09 10.86 15.68 y BUBOR=> Poland < 6.63 6.10 5.70 6.90 WIBOR=> Note: are for ask prices FRA quotes ********************************************* ***************** (Reporting by Alan Charlish in Warsaw, Gergely Szakacs in Budapest, Jason Hovet in Prague, editing by Ed Osmond)