SEK vigilant on CPI today – Danske Bank

Chief Analyst at Danske Bank Jens Sorensen noted the Swedish Krona should remain vigilant on the upcoming inflation figures in the Nordic economy.

Key Quotes

“Today it’s all about the SEK in Scandi FX markets. As noted above, our CPIF forecast is in line with the Riksbank. Hence, if our expectations are confirmed it should not have a significant impact on EUR/SEK”.

“However, as always the devil is in the details, and we will be particularly interested in the service inflation as noted above given that the decline in service inflation is a key argument as to why we expect the Riksbank to abstain from raising rates this year and why we have a negative outlook on the krona”.