Sweden: CPI will be a big test of the Riksbank's dovish resolve - ING

The Riksbank disappointed most by not turning more hawkish at its rate meeting and is still worried about inflation, according to the research team at ING.

Key Quotes

“SEK is trading with a stronger tone and technically we favour EUR/SEK breaking down to the 9.55 area. The biggest risk to SEK longs will be Wed's CPI release.”

“Tuesday will see Prospera release its inflation expectations poll. The last release saw 5-10 year inflation expectations at 2.1% - above Riksbank's 2% target. Another high reading could mean the Riksbank has to act (SEK +ve).”