CEEMEA Economics & Strategy Daily: USD momentum calmed down, ZA municipal elections, PL borrowing needs financing slow

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CEEMEA Economics & Strategy Daily: USD momentum calmed down, ZA municipal elections, PL borrowing needs financing slow

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06 Jul 2026 05:41:51 ET │ 20 pages

CEEMEA Economics & Strategy Daily

USD momentum calmed down, ZA municipal elections, PL borrowing

needs financing slow

Luis E Costa, CFA AC

CITI'S TAKE +44-20-7986-9757

USD momentum has calmed down somewhat (reinforced by the latest NFP luis.costa@citi.com

reading), but some USD resilience is still expected (especially vs G10 FX), AC Alexander Rozhetskingiven the high and sticky USD real yields (5y measure still near 2%).

+44-20-7508-4787

alexander.rozhetskin@citi.com

Global Macro –USD momentum has calmed down somewhat (reinforced by the

latest NFP reading), but some USD resilience is still expected (especially vs G10 FX), Bhumika Gupta AC

given the high and sticky USD real yields (5y measure still near 2%). CE is still +44-20-7986-5933

responding to the so-called CPI relief with a reasonably steady performance in bhumika1.gupta@citi.com

front-end and belly of the curves. We are preparing for a 1.8% CPI print in HU, which

may as well keep the NBH in gradual easing mode as we go through the summer Nikola Apostolov AC

months. It will be very important to monitor fiscal plans as markets head to the +44-20-7986-6499

official announcement of Karman's fiscal package at the end of August (even though nikola.apostolov@citi.com

details of it may be unveiled earlier). Wealth taxes, a rebalancing between

manufacturing and services industry tax charges, and the termination in tax Katie Kironde AC

exemption on trust assets will likely be part of this package. But most importantly +44-20-7986-3315

investors will be scrutinizing the magnitude of potential (and feasible) fiscal katie.kironde@citi.com