Inflation Data Would Have To Surprise To Provide Support For Swedish Krona (SEK)

In Sweden, inflation is due for publication today. An upside surprise is required to provide support to the Swedish Krona, economists at Commerzbank report.

Inflation data from Sweden likely to support further hikes

“The data for October, due for publication today, is unlikely to point towards an improvement on the inflation front, thus confirming that the Riksbank will have to take a further 50 bps rate step next week.”

“The market also expects 50 bps next week. That means today’s inflation data would have to surprise on the upside to provide support for SEK, as this would fuel speculation that the Riksbank will have to raise its rate path again, meaning that it would expect rates to peak at more than 2.50%.” 

“Market sentiment of course also remains an important factor for further SEK gains.”