Home BUSINESS / INVESTING EUR/SEK to move away from 11 on a 100 bps hike and higher Riksbank’s rate expectations – Commerzbank

EUR/SEK to move away from 11 on a 100 bps hike and higher Riksbank’s rate expectations – Commerzbank

by Admin Webtingale
EUR/SEK to move away from 11 on a 100 bps hike and higher Riksbank’s rate expectations – Commerzbank

The main event today will be the Riksbank meeting, where a 75 basis points hike is widely expected. However, only a 100 bps increase will strengthen the Swedish Krona, economists at Commerzbank report.

Not much support for Krona from hawkish Riksbank?

“As market expectations have also moved in the direction of 75 bps for today’s meeting and as it is clear that the Riksbank will probably hike the rate path I see little appreciation potential for Krona. For that to happen the expected peak of interest rates would have to be moved well above the 3% level with the statement sounding hawkish – something the Riksbank might want to avoid though with a view to the housing market.”

“If, however, today results in 100 bps combined with a significant move in Riksbank key rate expectations to the upside EUR/SEK might finally move away from the 11 mark again on a sustainable basis.”

See – Riksbank Preview: Forecasts from five major banks, another big rate hike

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

READ:  Dow Jones Newswires: EasyJet losses narrow, revenue grows, sees stronger passenger growth for early 2023

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Read More

Share on

You may also like

Leave a Comment