CEE MARKETS-FX gains on after US midterms, zloty up before rates decision

WARSAW, Nov 4 (Reuters) - Central European currencies firmed on Wednesday, as US midterm election results pressured the dollar, with the zloty recovering from multi-year lows ahead of the Polish central bank's rates decision, which analysts expect to be steady.

• A sweeping Democratic victory in the midterm elections sent the dollar tumbling, giving emerging market currencies such as those in Central and Eastern Europe (CEE) some breathing room

• ING analysts said the election results were already well priced, thus limiting implications for emerging Europe

• "A weaker US dollar and lower 10-year Treasury yields should further support the general sense of relief seen in recent days, driven by headlines regarding US-Iran negotiations and lower energy prices," ING added

• The trajectory of the conflict remains unclear, but market signals of continued relief should help push CEE rates lower and ease pressure on regional currencies, ING said

• The National Bank of Poland will keep interest rates unchanged on Wednesday, according to a vast majority of respondents polled by Reuters, unless inflation is projected to remain higher for longer

• By 1114 GMT the Polish zloty firmed 0.16% against the euro to 4.3980

• The implications of the US results could hamper further firming for the dollar and boost the zloty and other emerging market currencies, Polish state-run development bank BGK said

• Prime Minister Donald Tusk signed off on the appointment of four members of NBP's management board on Tuesday — removing the risk of a deadlock — which analysts saw as favourable for the zloty

• The Czech crown gained 0.14% and traded at 24.3050 per euro

• Czech headline inflation slowed a touch in October, preliminary data showed on Wednesday, although bets on an interest rate hike by the Czech National Bank on Thursday remain with a pick-up in price growth still expected

• "The persistently elevated growth in services prices in particular signals to the CNB that domestic factors continue to exert upward pressure on inflation, warranting a restrictive monetary policy stance," Erste Bank said

• "Today’s data do not change our view on the future path of CNB interest rates," Erste Bank added

• Elsewhere, the Hungarian forint was up 0.28% to 363.40 per euro