FXstreet.com (Barcelona) - The pair is retracing earlier gains after posting fresh monthly highs in the proximities of 1.1660 ahead of the Riksbank monetary policy meeting due on February 13. Market consensus still remain pretty divided regarding a rate cut, as late improvement in Swedish data out of the retail sales and manufacturing and services PMI would add further pressure to the Nordic central bank.

“We remain hesitant and still believe that a cut in April is more plausible as the Swedish economy in line with the global economy seems to be stabilising. If we are correct that the Riksbank will keep rates unchanged, NOK/SEK should see some downside potential this week”, explained Senior Analyst C.Tuxen at Danske Bank.