Euro Catapults Higher vs SEK After Dovish Riksbank
EURSEK Analysis and Talking Points
- Riksbank Provides Dovish Message
- EURSEK On Course for Largest Daily Gain in Over 2 Years
The Riksbank provided a much more dovish message than the markets had expected, which in turn saw EURSEK catapult higher and is track for its biggest intra-day gains since October 2016. The central bank had lowered its repo-rate path, having noted that the rate will remain at current levels for a longer period of time than assumed in February.
The main focal point behind the decision had been due to the soft inflation prospects with the Riksbank highlighting that inflationary pressures have been weaker than expected and is now seen to be lower over the next few years. As such, the Riksbank’s view that the repo rate is expected to be raised again towards the year-end or beginning of next year looks to be somewhat hopeful.
|CPI||2.0 (Prev. 2.2)||2.3 (Prev. 2.6)||2.6 (Prev. 3.0)|
|CPIF||1.8 (Prev. 2.0)||1.8 (Prev. 1.8)||1.9 (Prev. 2.0)|
|GDP||1.7 (Prev. 1.3)||1.9 (Prev. 1.9)||1.8 (Prev. 1.8)|
|Unemployment||6.4 (Prev. 6.3)||6.5 (Prev. 6.5)||6.6 (Prev. 6.6)|
|Repo Rate||-0.2 (Prev. -0.2)||0.1 (Prev. 0.3)||0.5 (Prev. 0.8)|
EURSEK Price Chart: 1-Minute Timeframe (Intra-day)
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--- Written by Justin McQueen, Market Analyst
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.