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Analysts at Nordea Markets suggest that in a light Scandinavian news week, focus remained on the Riksbank’s backtracking of the market reaction created by the sentence “it is important that the krona exchange rate develops in a way compatible with inflation stabilising close to the target” from the April meeting.

Key Quotes

“This week board member Cecilia Skingsley reiterated her remarks from the most recent meeting minutes and thereby confirmed that she is not discontent with EUR/SEK recoiling from its highs close to 10.70.”

“Also this week’s early signs of stabilisation in the Swedish housing market indicated by the HOX/Valuegard figures were SEK positive. SEK is still roughly 1.5% weaker than anticipated by the Riksbank in April, indicating that EUR/SEK can drop to around 10.15 without any notable bearing for the Riksbank.”