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10 Dec 2015
SEK: Inflation upticks won’t deter Nordic easing - BNPP
FXStreet (Delhi) – Research Team at BNP Paribas, expects Swedish November CPI to have crept up to an 0.2% y/y rate from 0.1% in October and look for Norway inflation to improve to 2.7% y/y from 2.5%.
Key Quotes
“Despite the evolution of the price data, we think both Riksbank and Norges Bank will proceed with further policy easing next week. With oil prices remaining weak we think the outlook for the NOK remains negative. However, we remain inclined to fade weakening in SEK, with the better macro outlook heading into 2016 likely to curb expectations for further Riksbank easing down the road. Short EURSEK remains a favoured trade for us in 2016.”
Key Quotes
“Despite the evolution of the price data, we think both Riksbank and Norges Bank will proceed with further policy easing next week. With oil prices remaining weak we think the outlook for the NOK remains negative. However, we remain inclined to fade weakening in SEK, with the better macro outlook heading into 2016 likely to curb expectations for further Riksbank easing down the road. Short EURSEK remains a favoured trade for us in 2016.”