CEE MARKETS-Zloty and forint give up some gains after risk-on rally

BUDAPEST, Jan 23 (Reuters) - The Hungarian forint and the Polish zloty traded a touch weaker on Friday after strengthening in the previous session when the easing of geopolitical tensions over Greenland led to a risk-on mood in markets.

The Hungarian forint EURHUF= slid 0.2% and was trading at 382.50 to the euro after rising to a 7-week high in the previous session.

"Trump switched back to a less severe voice, and markets calmed down," an FX trader in Budapest said.

"What we see today is a small correction, but I would say the region is still following the global risk appetite," the trader said.

Earlier this week, U.S. President Donald Trump said he would not slap on trade tariffs for now and would not take Greenland by force.

In Hungary, investors also eyed a meeting of the central bank scheduled for next Tuesday.

A Reuters poll indicated on Friday that the bank was all but certain to leave its base rate steady at 6.5% as strong services pricing at the end of last year tempers the case for easing.

However, analysts now see room for 75 basis points worth of rate easing by the end of 2026, 25 bps more than expected last month, amid a slightly more benign inflation outlook over the next two years compared with their December projections.

The Polish zloty EURPLN= eased 0.2% to trade at 4.2055 per euro.

"We believe that with a sustained de-escalation of geopolitical tensions and continued signs of economic recovery in Poland, the złoty could fall below 4.20," Bank Millennium wrote.

Elsewhere, the Czech crown EURCZK= edged higher to trade at 24.265 to the euro.

Stocks in the region were mixed, with Warsaw's blue-chip index .WIG20 down 1% while Budapest's equities .BUX also lost 1%. Prague's stocks .PX added 0.3%.