Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Swedish Krona Dips As Riksbank Shifts Policy Stance

Swedish Krona Dips As Riksbank Shifts Policy Stance

Oliver Morrison, Analyst

Talking Points

- Riksbank leaves rates at -0.5% as expected.

- But it surprises markets by extending its bond-buying program,

- It also shifts its forecast for an interest rate rise even further back, until mid-2018.

- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.

Would you like to know more about trading the financial markets? DailyFX’s trading guide should be your first stop.

The Swedish Krona dropped in early Thursday trade after the country’s central bank, the Riksbank, unexpectedly shifted its policy stance at its April meeting.

As was forecast, it left interest rates unchanged at -0.5%, but it surprised markets by announcing an extension of its quantitative easing program.

It will extend its monthly bond purchases by a further SEK15bn (€1.56bn) during the second half of the year. It has shifted its forecast for an interest rate rise even further back, until mid-2018.

This dovish tone has surprised markets, given that economic activity in Sweden has remained strong. Indeed, the central bank’s executive board was split over the decision. The Riksbank acknowledged that “economic activity in Sweden is increasingly strong”, but said it now thinks it “will take longer before inflation stabilizes around 2%”.

Without a substantial pick-up in prices globally, inflation is therefore most likely to continue to be a challenge for the Riksbank, so traders shouldn’t expect a hawkish turnaround in policy any time soon.

Here is the reaction in EURSEK.

Chart: EURSEK 15-Minute Timeframe (Intraday April 27)

The Krona also dipped versus the US Dollar.

Chart: USDSEK 15-Minute Timeframe (Intraday April 27)

Charts by IG

--- Written by Oliver Morrison, Analyst

To contact Oliver, email him at

Follow Oliver on Twitter @OPWMorrison

If you’re looking for trading ideas, check out our Trading Guides; they’re free and updated for the second quarter of 2017

If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment Data

Would you like to know more about financial market trading, or to get live coverage of major economic events? The DailyFX webinars are for you.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.