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 EURSEK 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).”