The SEK remains the G10 FX outperformer MTD, although the NOK and EUR have closed the gap to the top this week. Of special note, EUR/SEK has failed to extend the multi-year lows reached a week ago in spite of EUR/USD having rallied past last November’s peak of c.1.0937.
The SEK remains the G10 FX outperformer MTD, although the NOK and EUR have closed the gap to the top this week. Of special note, EUR/SEK has failed to extend the multi-year lows reached a week ago in spite of EUR/USD having rallied past last November’s peak of c.1.0937.
Monday’s underwhelming Swedish GDP print may have somewhat curbed the excitement surrounding the SEK since the start of February, as in our view compelling evidence of Sweden’s macro outperformance remains needed for the SEK to durably cement the recent gains for the long run. In this context, inflation considerations could remain on the back burner, as the Riksbank is widely seen on hold at 2.25% for the two years ahead.
That should not be altered by the publication of the final CPIF figures for February this morning, as since the recent introduction of the flash print, the initial estimate has always been confirmed a week later.
