According to Daniel Brødsgaard, analyst at Danske Bank, yesterday’s Riksbank decision ended up as a big disappointment for them (and the krona) as the rate path was lowered by as much as 40bps at the end of the forecast horizon (Q1 2022), and the timing of the next hike was effectively shifted from Sep/Oct this year to year-end or even early 2020. Key Quotes “On top of that, the board deemed it necessary to continue reinvestments of the Riksbank’s already vast bond portfolio. Admittedly, this was against our call for the meeting, and as such our 1M forecast of 10.35 seems very distant.” “The initial market reaction was to send the cross up above 10.65 (from 10.50), which seems reasonable given the shift in Riksbank tone. Lacking any near-term SEK triggers, we cannot rule out tests of the 2018 highs around 10.70 short term.” “If anything, the risks are tilted towards an even more dovish outcome from the next meeting (July), as we remain more pessimistic than the Riksbank on both domestic growth and inflationary pressure. We are in the process of reviewing our SEK forecast profile in light of the latest developments.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next SNB’s Jordan: Negative rates, readiness to intervene in FX market remains necessary and appropriate FX Street 4 years According to Daniel Brødsgaard, analyst at Danske Bank, yesterday's Riksbank decision ended up as a big disappointment for them (and the krona) as the rate path was lowered by as much as 40bps at the end of the forecast horizon (Q1 2022), and the timing of the next hike was effectively shifted from Sep/Oct this year to year-end or even early 2020. Key Quotes "On top of that, the board deemed it necessary to continue reinvestments of the Riksbank's already vast bond portfolio. Admittedly, this was against our call for the meeting, and as such our 1M forecast of 10.35… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
