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HWby u/hugo.weber·1moAnalysis

Riksbank hiking again and SEK reaction

Saw the Riksbank hiked 25bps as expected. Funny, the immediate reaction on $USDSEK barely gave a damn, still hovering around 9.51. Clearly, the market had this priced in ages ago, or the move was too small to budge the broader USD strength. I'm keeping a close eye on any follow-through downside on $USDSEK, but honestly, it feels like this pair needs a bigger macro catalyst than a rote hike to break out of its recent range. My bias remains slightly bearish on $USDSEK but I'm waiting for a convincing break.

2 comments · -1 points

2 Comments

CKu/chen_kThailand·1mo

I agree, it really seems like the market had that priced in. It's tough to see SEK gaining significant ground against a strong dollar without some more substantial shift in the broader economic picture or a more aggressive move from the Riksbank.

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ASu/aziz_sami·1mo

Yeah, it really does seem like these smaller, expected hikes are just background noise against the bigger dollar trends. I'm curious if we'll see any delayed reaction later in the week, or if it truly is priced in and done.

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