Trade alert: SEK into Riksbank!
We find risks of a hawkish address from the Riksbank underappreciated and see 50bps as our base-case. The Riksbank needs to stop the bleeding in the SEK or at least attempt to and even the doves such as Flodén know it.
The Swedish Riksbank is the final major central bank to deliver its updated views in June. The street expects the Riksbank to deliver a 25bps hike, but market pricing is skewed towards a tad more being delivered as 30’ish bps are priced in. Only JP Morgan sees 50bps as a clear risk scenario, while most local analysts expect 25bps and a hawkish revision of the rate path.
There are pros/cons of betting on a hawkish outcome of the meeting
Read how we prefer to trade it with a 14-day free trial below.
We find risks of a hawkish address from the Riksbank underappreciated and see 50bps as our base-case. The Riksbank needs to stop the bleeding in the SEK or at least attempt to and even the doves such as Flodén know it.
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