The Riksbank To Cut Next Week But EUR/SEK Expected To Go Lower In 2013

Published 12/12/2012, 07:17 AM
Updated 05/14/2017, 06:45 AM
EUR/SEK
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RKT
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Riksbank preview:

We expect a cut next week but since this is more or less priced in and overall pricing is quite aggressive, the impact on EUR/SEK should be limited. We expect EUR/SEK to move lower in 2013 with SEK getting support from high-quality fundamentals and positive carry.
inflation expectations way below inflation target
Sweden's inflation expectations at 2.0% (2.1) in five years and fell to cut inflation expectations way below inflation target 1.5% (1.7) in two years according to Prospera‘s survey, out this morning. The Riksbank (RB) could use the survey saying the inflation target is credible and expectations are well anchored but we think it makes it easier for the RB to cut next week given the fact that 2Y expectations are quite far from target now, 1.5% is the lowest print since 2009.

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