EUR/SEK vigilant on inflation figures – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen noted SEK should closely follow the upcoming inflation figures in the Scandinavian economy.

Key Quotes

“EUR/SEK started the week quietly. Today, focus turns to the production numbers (the budget dittos are usually dismissed by the FX market). However, we think that it will take a substantial surprise to have any big and lasting impact on EUR/SEK”.

“The major focus this week for the SEK is Friday’s inflation data, where higher energy prices will push CPIF above the Riksbank’s forecast, while core inflation – ex energy – will be below its 1.44% estimate”.

“At the end of the day, we think that the Riksbank and the market will pay more attention to the core measure, which if anything should be bullish for EUR/SEK”.