Sweden’s Riksbank is broadly anticipated to ship a 25bp price lower, doubtless marking the top of its easing cycle, ING’s FX analyst Francesco Pesole notes.
However hawkish steerage might help SEK
“Sweden’s Riksbank is anticipated to chop charges by 25bp, in what in our view would be the final transfer of the cycle. Whereas the current oil worth spike means a barely better probability of maintain, we doubt the Riksbank will need to shock a market that’s pricing in 22bp.”
“The dangers are, nevertheless, skewed to the hawkish facet in relation to forward-looking language, which might offset the speed lower impression on SEK. The krona’s restricted response to geopolitical threat reinforces its new function as a secure forex, and we nonetheless count on gradual EUR/SEK depreciation within the coming months.”
