Riksbank delivers surprise QE boost, EUR/SEK unmoved – TDS

The Riksbank kept its policy rate on hold, but expanded its QE program and cut the lending rate for banks. The SEK largely ignored this decision as FX investors remain focused on broader shifts in risk appetite, therefore, economists at TD Securities expect the EUR/SEK pair to trade within the 10.35-10.60 range.

Key quotes

“The Riksbank left its policy rate unchanged at 0.00% today, as had been fully expected. But it did surprise markets in announcing a number of other measures: the stock of asset purchases was expanded to SEK 500 billion, through June 2021 and the interest rate to loans for banks was lowered, both for the standing loan facility and the weekly extraordinary loans. The maturity on loans to banks for onward lending to companies was extended from 2 years to 4 years.”

“It looks like the Riksbank had decided to follow in the footsteps of the ECB, ensuring ample stimulus for the next year, rather than the more hawkish Norges Bank, which had a hiking cycle beginning around the end of 2022.”

“The SEK completely shrugged off the Riksbank's notable expansion of its policy support measures. EUR/SEK went into the July meeting near the midpoint of the wide 10.35/10.60 range in place over the last 6-7 weeks. The policy decision did little to upset the consolidative tone seen in recent days.”


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.


GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.


XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI drops to fresh weekly lows below $39 amid virus risks, IEA forecast

WTI (August futures on Nymex) extends the steep declines seen on Thursday to drops over 1.50% in the European session this Friday. The oil bears breach the 39 level to hit the lowest levels in eight days at 38.76.

Oil News