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SEK looking wobbly post-CPI
That Swedish CPI print today definitely gave $USDSEK a shot in the arm, pushing it up to 9.76043 and even testing the highs of the day. Feels like the market is really starting to question if the Riksbank has much room to maneuver, especially with inflation still sticky but growth concerns bubbling up. Keeping a close eye on any follow-through tomorrow, particularly if we hold above 9.70.
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Agreed, the Riksbank's position looks increasingly unenviable. I'm wondering how much of this recent SEK weakness is genuine concern over their policy space versus broader USD strength.