SEK: Positive CPI surprise may do little to whet Riksbank’s hawkish appetite - ING

SEK continues to face conflicting forces – with bearish sentiment being offset by a turnaround in near-term economic data, according to Viraj Patel, Research Analyst at ING.

Key Quotes

“Indeed, after 2 months of downside surprises, Swedish CPI came in above-consensus at 2.0% YoY yesterday – which triggered a sharp reversal in EUR/SEK towards 9.90. Yet, our economists believe that the positive CPI surprise will have little bearing on the Riksbank’s inherently dovish mindset next week (20 Dec); this means that it may still be a bit early for calling a EUR/SEK reversal – that’s a 1Q18 story for Petr Krpata (targeting 9.60).”