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3 Mar 2015
Riksbank might have more surprises – TDS
FXStreet (Barcelona) - Jacqui Douglas, Senior Global Strategist at TD Securities shares that the comments of Riksbank’s Skingsley and Ingves indicates that Riksbank might have another surprise for the markets soon.
Key Quotes
“There was very little data to drive markets one way or the other, although in central bank speak the Riksbank was quite active with speeches from Skingsley and Ingves already this morning, and af Jochnick yet to come in another hour or so. The remarks from Skingsley and Ingves were generally balanced, with both talking about last week’s stronger than expected Q4 GDP outcome, but also reiterating that the Riksbank can do more and can act at any time.”
“Markets seemed to pay more attention to the more hawkish comments, with Swedish rates higher on the day, and with EURSEK approaching its 2015 lows and its 200-day MA in the 9.2660-2710 range.”
“With EURSEK having now undone all of the gains from into the rate cut a few weeks ago, this makes it even more likely in our minds that the Riksbank is going to cut rates again at its next opportunity, and possibly even between meetings.”
Key Quotes
“There was very little data to drive markets one way or the other, although in central bank speak the Riksbank was quite active with speeches from Skingsley and Ingves already this morning, and af Jochnick yet to come in another hour or so. The remarks from Skingsley and Ingves were generally balanced, with both talking about last week’s stronger than expected Q4 GDP outcome, but also reiterating that the Riksbank can do more and can act at any time.”
“Markets seemed to pay more attention to the more hawkish comments, with Swedish rates higher on the day, and with EURSEK approaching its 2015 lows and its 200-day MA in the 9.2660-2710 range.”
“With EURSEK having now undone all of the gains from into the rate cut a few weeks ago, this makes it even more likely in our minds that the Riksbank is going to cut rates again at its next opportunity, and possibly even between meetings.”