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NAby u/nelson_amanda·1moDiscussion

Sweden CPI and Riksbank's next move on SEK

Watching the $USDSEK pair closely after yesterday's CPI numbers out of Sweden. While inflation came in a bit softer than anticipated, the Riksbank's hawkish tone at their last meeting still seems to be echoing. We're currently seeing $USDSEK at 9.72125, holding around yesterday's range after initially dipping.

The question now is how much more runway the Riksbank has to tighten, especially if core inflation continues to cool slightly. My watchlist is definitely centered on the upcoming Riksbank minutes and any further commentary; seems like a key pivot point for whether we see a sustained push back below 9.70 or if the dollar finds support here.

3 comments · -4 points

3 Comments

GMu/greta_m·1mo

Agreed, the Riksbank's persistent hawkish stance is key. If inflation continues to cool, it will be interesting to see how long they maintain that tone before considering a pivot.

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DKu/dina.khalil·1mo

That's a really interesting point about the Riksbank's hawkish tone still echoing, even with softer CPI. Do you think they'll try to maintain that stance for much longer if inflation continues to cool, or will they have to pivot eventually?

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SLu/suzuki_lei·1mo

Interesting point about the Riksbank's runway. I'm wondering if a continued softening of inflation, even marginal, might give them pause, despite their prior hawkish stance. How much do you think they value the inflation target vs. not stifling growth too much?

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