EUR/SEK: Core inflation might lead to test 10.60 – Danske Bank

Sweden will release Consumer Index Price (CPI) at 8:30 GMT and the data can trigger some reaction in the EUR/SEK pair which is currently trading at 10.565, economists at Danske Bank report. 

Key quotes

“Although the Riksbank’s new inflation forecast has lowered the bar for positive surprises, we still see the upside risks in EUR/SEK as more prominent.” 

“In today’s CPI release perhaps more interesting than the actual figures is the composition, as markets and the Riksbank diverge on what is expected to cause inflation to fall from here on: a core inflation more in line with our forecast might induce a test of 10.60 in the cross, at least as a knee-jerk reaction.”