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13 Mar 2015
Riksbank could be forced to act on strong SEK – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Morten Helt assessed recent comments by Riksbank’s Jansson regarding SEK strength.
Key Quotes
“The SEK also lost some momentum yesterday following dovish comments from Riksbank governor Jansson saying that strong SEK appreciation – especially against the EUR - would be a big problem”.
“He stressed that FX intervention is still a part of the internal discussion in the Riksbank. Moreover, he added that the Riksbank could buy much more bonds if needed and could act between its scheduled meetings”.
“In our view, Jansson’s comments signal that further downside in EUR/SEK is a factor that could force the Riksbank to act despite higher spot inflation”.
Key Quotes
“The SEK also lost some momentum yesterday following dovish comments from Riksbank governor Jansson saying that strong SEK appreciation – especially against the EUR - would be a big problem”.
“He stressed that FX intervention is still a part of the internal discussion in the Riksbank. Moreover, he added that the Riksbank could buy much more bonds if needed and could act between its scheduled meetings”.
“In our view, Jansson’s comments signal that further downside in EUR/SEK is a factor that could force the Riksbank to act despite higher spot inflation”.