USD/SEK

Brown Brothers Harriman’s (BBH) Elias Haddad reports the Swedish Krona (SEK) rallied after the Riksbank delivered a hawkish hold, keeping rates unchanged but signaling more tightening ahead.

Kit Juckes at Societe Generale argues that Swedish Krona (SEK) is poised to benefit from Sweden’s superior growth outlook and expected Riksbank tightening.

Commerzbank’s Antje Praefcke argues that despite currently low Swedish inflation readings, the Riksbank is likely to maintain its guidance that the policy rate could rise by year-end.

BNY’s Geoff Yu says rising Swedish import prices and continued weakness in the krona are adding to inflation risks. He expects the Riksbank to adopt firmer language on SEK valuations and sees scope for the market to bring forward expectations for the next rate hike.

Commerzbank’s Antje Praefcke reports that the Riksbank left its policy rate at 1.75% and maintained a restrictive stance, still seeing a hike later this year as likely.

BNY Mellon’s Geoff Yu reports the Swedish Riksbank left its policy rate at 1.75%, judging the stance well balanced amid stronger growth and inflation but a softer labor market. Underlying inflation is near 2% and summer readings beat forecasts.