Bullish on SEK Ahead of CPI Data – BNPP
Research Team at BNP Paribas, suggests that the March inflation data remains in focus across Europe this week.
Key Quotes
“In
Sweden we expect Tuesday’s release to show the headline y/y rate
re-accelerating to 0.6% after the February dip, while core inflation
should firm to 1.3% y/y. With growth numbers quite robust and inflation
picking up we believe the Riksbank will struggle to match ECB easing
going forward and remain short EUR/SEK targeting 9.15.
Meanwhile
our economists see UK CPI remaining stable at a 0.3% y/y rate, offering
market participants little incentive to shift attention from political
developments. The latest reading from our positioning indicator suggests
GBP shorts have turned even more extreme with a score of -45 (on a
-50/+50 scale).”
(Market News Provided by FXstreet)
