BUDAPEST/BUCHAREST: The zloty and the forint gave up some of last week's gains on Monday as some investors were cautious before the publication of second-quarter economic output data in Central Europe later this week.
Both currencies eased 0.2 percent against the euro by 1342 GMT.
The zloty stayed near 15-week highs, trading at 4.2845, and the forint near 2-month highs, at 311.15.
Second-quarter economic output figures due this week in the region are expected to show faster growth than in Western Europe as Britain's exit from the European Union, decided in a referendum in June, is not seen having much impact.
Surging output in sectors such as car making, expanding domestic consumption as wages converge with the West, and an inflow of generous funding from the EU have helped to support economies in the region.
The zloty was also lifted last week by the publication of a plan to tackle the problem of Swiss franc mortgages in the Polish banking system, which could impose lower costs on banks than feared.
"The presented scenario poses a risk for the zloty to remain stronger than we have been expecting so far, but we prefer to wait with a revision until the 2Q16 GDP data is released on Friday," Erste Group analyst Katarzyna Rzentarzewska said.
"In the event of a disappointing number, the zloty may give back some of its recent gains," she added, in a note.
Analysts expect Poland's annual economic growth to pick up to 3.3 percent from 3 percent in the first quarter, and Hungary's growth to pick up to 1.9 percent from 0.9 percent.
The Czech Republic reported upbeat June industrial output and trade surplus figures on Monday, helping Prague's main stock index rise by 1.4 percent. Romanian wages surged 14.3 percent from June last year.
Romania's central bank sharply lowered its price forecasts on Monday, projecting negative inflation throughout 2016, but said consumption-driven economic growth meant no further stimulus was needed.
Romania's 10-year government bond yield dropped 2 basis points from Friday to 3.03 percent, while Hungary's and Poland's corresponding yields rose one basis point to 2.76 and 2.91 percent respectively.
"We expect that Hungarian bonds can once again approach Polish yield levels due to much more accommodative monetary policy in Hungary...," Raiffeisen analysts said in a note.
"In contrast (to the forint) EUR/PLN may stay fairly volatile," they said, adding that further details of the Polish bill to be announced later may weigh on the zloty.
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