Sweden's Riksbank is widely expected to cut rates by another 25bp today, ING’s FX strategist Francesco Pesole notes.
SEK to remain more sensitive to external factors
“Riksbank is expected to cut rates by another 25bp today. Governor Erik Thedeen and his colleagues have been giving rather explicit forward guidance to markets, signalling three rate cuts by the end of the year.”
“Despite some modest speculation for a 50bp reduction in one of those meetings, we think that signs of stabilisation in Sweden's economic outlook should discourage moves larger than 25bp. Markets are fully pricing in 25bp today and probably a reiteration of the recent pledge to keep cutting this year.”
“Ultimately, SEK should remain more sensitive to external factors, as the ratecutting cycle is priced in and the Riksbank seems on a stable and predictable path. EUR/SEK can remain under some pressure and test 11.20 in the near term.”
Related Articles
[U.S. IPO] Klarna's IPO Fuels Buzz: Is the BNPL Industry Poised for a Breakthrough?
TradingKey -According to Bloomberg, European "Buy Now, Pay Later" (BNPL) giant Klarna finalized its IPO pricing on September 10, raising $1.37 billion at $40 per share, which gives the company a valuation of approximately $15.1 billion. This pricing surpasses the initial estimate of $35-37 per share.jpg)
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
Unlocking Gold’s Next Leg: $4,000 in Reach by 2025？
TradingKey - Gold has kicked off a fresh uptrend in early September, breaking out of months of compression and reclaiming key territory. The decisive move above $3,500 establishes a new support base and puts higher objectives back on the table for the weeks ahead
CoreWeave’s Q2 FY2025: AI Surge Drives Record Revenue, but Profit Challenges Persist
TradingKey - CoreWeave, Inc. (NASDAQ: CRWV) Q2 FY2025 earnings delivered strong revenue growth but missed earnings expectations, which led to a roughly 10% stock price drop in after-hours trading. Revenue surged 207% year-over-year, driven by robust demand for its GPU-intensive AI cloud platform.
