SEK: Guided by Riksbank today - ING

ING’s Jonas Goltermann believes the key question at today’s Riksbank meeting is what the central bank makes of recent SEK weakness.

Key Quotes

“One may be inclined to start questioning the textbook case of whether a weaker currency does provide a reflationary impulse – or whether at this stage a weaker currency is symbolic of something more ominous in the economy. With 16bp of tightening by year-end priced into the OIS curve, and a more dovish Riskbank message likely today, the risks are that markets lower their conviction over a 4Q18 rate hike – leading to a knee-jerk move lower in the krona (with EUR/SEK looking to breach 10.50).”