Christin Tuxen, chief analyst at Danske Bank, points out that after a brief visit above 10.60, EUR/SEK turned lower on comments by Riksbank vice governor Cecilia Skingsley.
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“She said SEK weakness was unjustified based on macro, that she is comfortable with the bank’s repo rate path and stressed that it has become more forward-looking and thus less inclined to respond to spot inflation. The latter can be seen as a response to the substantial January inflation miss.”
“We think the Riksbank’s tolerance to such misses will be tested again next week when the February numbers are due out.”