Riksbank: April meeting could be another story – Nordea Markets

Sandeep Kanihama FXStreet Contributor

Analysts at Nordea Markets point out that in the February meeting of Riksbank, it refrained from sending any new policy signals, which prompted a slight hawkish surprise given the gloomy sentiment that was built up ahead of the meeting.

Key Quotes

“The Riksbank didn’t prolong the currency intervention mandate, and while this has no real practical significance, it is a signal to markets that the Riksbank may care a little less about the SEK level going forward.”

“We still warn against extrapolating the slightly hawkish take-away, as the Riksbank remains too optimistic on growth and private consumption for instance. This could prompt a downward revision of the rate path in April, if the Riksbank is proved wrong. Furthermore, the decision on how to handle the maturing Dec-2020 bond on the balance sheet will likely be taken in April. If the Riksbank mirrors its pre-reinvestment actions head of the Mar-2019 bond redemption, then they will decide to pre-reinvest the maturing bond in Dec-20 already now. This would leave an expanding balance sheet for the rest of 2019 and until Dec-2020. Not a hawkish nor SEK positive scenario.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD flat lines near 1.1800 as traders brace for US PPI release

The EUR/USD pair trades on a flat note near 1.1800 during the early Asian session on Friday. The pair steadies as softer Eurozone inflation offsets US tariff uncertainties. Traders await the preliminary reading of the Consumer Price Index from Germany on Friday for more clues about the pace of future policy easing. On the US front, the Producer Price Index report will be released.

GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold awaits acceptance above $5,200 and US PPI data

Gold consolidates previous rebound near $5,200 amid risk-off markets, awaiting US PPI release. The US Dollar eyes a flattish weekly close as dovish Fed outlook and tariff woes outweigh geopolitical risks. Gold yearns for acceptance above $5,200 to resume the uptrend, with a bullish RSI in play.

Top Crypto Gainers: Stable and Decred rally, Pippin approaches record highs

Altcoins, such as Stable, Decred, and Pippin, are extending gains so far this week, defying the risk-averse conditions in the broader cryptocurrency market. Stable and Pippin are near record high levels, while Decred extends its breakout rally above $30.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Bitcoin steadies as traders eye US–Iran talks

Bitcoin (BTC) price is stabilizing around $68,000 at the time of writing on Thursday after a 6.2% relief rally the previous day amid a broader downward trend.