Monday, October 26, 2015

Riksbank Preview: Pressure mounts to follow ECB footsteps - Nomura

FXStreet (Delhi) – Yujiro Goto, Research Analyst at Nomura, suggests that the pressure on the Riksbank to follow the ECB’s dovish move is high to avoid further SEK appreciation.

Key Quotes

“We have been expecting the Bank to announce a QE extension into 2016 in Q4, and we now believe there is a higher possibility of an announcement next week. The likelihood of a rate cut cannot be ruled out.”

“However, the Bank likely wants to save the option for later, as the ECB’s next policy measures are unclear, while there are concerns over further rate cuts among board members. We recommend maintaining an SEK short bias, as the likelihood of additional easing has risen following yesterday’s ECB meeting.”
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